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Securing Your Tomorrow800. 826.5256 www.ncscredit.com

Since 1970, NCS has been the leader in providing credit professionals throughout the U.S. and Canada with proactive solutions to secure receivables, minimize credit risk and improve profitability. NCS UCC Services Group provides assistance in the preparation, filing and maintenance of financing statements under Article 9 of the Uniform Commercial Code. We offer the industrys only full-service, flat fee program with three program levels to choose from based on your business needs and volume.

In addition, in the last 42 years NCS has educated more than 60,000 credit personnel on securing their receivables and reducing their risk. Every month NCS conducts free webinars on a variety of topics including UCC filings, mechanics liens, bond claims, public construction and lien foreclosure. The information provided can assist you in developing a UCC, notice and lien and bond claim program. A complete schedule of NCS webinars can be found on www.ncscredit.com.

Conduct a Reflective Search After Every UCC FilingObtaining a reflective search is the best practice to make sure the UCC financing statement or UCC change statement has been indexed accurately.

What is a reflective UCC search?A reflective UCC search confirms that a UCC filing was recorded. The reflective search returns a jurisdictional report by debtor name reflecting all UCC filings through the date of your recorded UCC filing. This search also lists previous secured creditors by filing date to help determine your filing position.

In 2001, Revised Article 9 changed the requirements of the debtor name and implemented standard search logic.

What is the debtor name? Section 9-5039(a) describes the debtor name as either:

A registered organization1. , of which the name is as indicated on the public record of the debtors jurisdiction of organization; or

An individual2. , which several states describe as the name on a birth certificate or drivers license.

Article 9-506(b) clearly states a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 9-503(a) is seriously misleading. Not following the rules for a correct debtor name will affect whether the UCC filing is found using the states standard search logic.

What is standard search logic? In 2001, standardized search logic rules were developed by the International Association of Commercial Administrators (IACA). IACA is the professional association for government administrators of business organizations and secured transaction record systems. Each state formed its own search logic rules based on IACAs rules. The strict search logic intentionally left no margin for error or variances of the debtor name.

How are filings recorded?A filing is recorded according to the law of a particular filing state. Options include XML, internet manual entry, fax or mail. Many states still have manual processes that can lead to errors by either the submitting party or the filing officer. Such errors can jeopardize the security.

Additionally, each state has its own rules to record names and index filings. Your filing is indexed in accordance with the particular method used in the recording state. This means the filing party must know the nuances of each states filing system in order to search the filings properly. For example, punctuation can be extremely important in one state and of little importance in another. Other ways states have adopted different rules include:

PunctuationApostrophesThe ampersand (&)How to treat the word theSpacesIndividual names

Can a reflective search help confirm the accuracy of a UCC filing?When done properly, a reflective search can confirm the accuracy of a UCC filing. It can assure:

No errors in debtor name were made by the recording entity.

The filing was recorded in accordance with a particular states methods and format.

Change statements are indexed to the proper original filing.

Are you sure your debtor name is indexed correctly? Unless you are familiar with these processes in all 50 states, contacting NCS for assistance is recommended. We can be reached at 800-826-5256 or SecureYourTomorrow@ncscredit.com.

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