If your search reveals no additional liens, let out a sigh of relief and advance to Step 3. Step 2: Damage Control Should your search uncover any liens that were filed following your original UCC financing statement, those lien-holders may have moved into a priority position. For non-UCC liens such as tax liens, it is advisable to work with your debtor to find out if the debt has been satisfied. If so, you may want to ask the debtor to request that the issuing body file a tax lien release.
For UCCs, remember to review the collateral descriptions very carefully to determine if they represent a competing claim for the property set forth in your security agreement. Step 3: File a new Financing Statement After performing a lien search and taking what steps you can to minimize your risk, you will likely want to file a new UCC1 financing statement to secure a place in line to collect.
Please remember, if your UCC filing has lapsed in error, the most important step you can take is to consult with your legal counsel. Although there is no way to revive a lapsed financing statement, there are tools you can use to minimize their occurrence. Failure to include an appropriate filing fee. What information is required for a UCC-3 filing? The required information is: An acknowledgement name and address.
Recommended for return copy of the filing. The file number of the original financing statement. Current record information box 6 of the debtor on the initial financing statement.
Recommended Name of the secured party on the initial financing statement. However, it is important to note that for a UCC1 filing a termination is only an amendment and that the UCC1 filing may be amended further, even after a termination has been filed.
Within the last 6 months that the filing is active, it may be continued for another five years. However, the continuation amendment MUST be filed within the 6 month window before the lien lapses. Box 4 — Assignment — This is an assignment of interest to another secured party. Sometimes this is used to assign certain portions of collateral to specific secured parties.
The good faith of the parties to the transfer is irrelevant. If found to be a preference, the transaction can be voided and recaptured by the debtor and returned to the bankruptcy estate to be equitably distributed to the general pool of creditors.
Because there is no re-perfection under the UCC, a subsequent filing made after a lapse is treated as a grant of new security to secure an antecedent, unsecured debt. If the debtor is insolvent at the time of this filing and it ultimately goes into bankruptcy in 90 days — all the elements of a preference under the U.
Bankruptcy Code are satisfied [3] and this grant of security is voidable for giving the creditor more than it would be entitled to under a liquidation. This is certainly a serious and unintended consequence of a late renewal! We would welcome any feedback from Canadian readers to confirm if an analogous situation arises under Canadian law. If any readers are familiar with how re-perfection is handled in other jurisdictions, we would love to hear from you! For example, UCC-1 financing statements filed in respect of public-financed transactions have a year effective period.
0コメント