Skip to main content
Bernstein Burkley
  • Practice Areas
    • Overview
    • Bankruptcy & Restructuring
    • Business and Corporate Transactions
    • Creditors’ Rights
    • Litigation
    • Oil & Gas and Energy
    • Real Estate
    • Real Estate & Commercial Finance
  • Our Attorneys
  • About Us
    • Our Approach
    • History
    • Law Lists
    • Professional Memberships
    • Careers
  • Resources
    • Bernstein’s Dictionary of Bankruptcy Terminology
    • Links
    • Five Minute Legal Master videos
    • Blog
    • Legal Publications
  • News
    • Cases Archive
    • Firm News
    • In the News
    • Industry News
  • Contact
CALL - 412 456 8100
Connect
  • Facebook
  • Twitter
  • LinkedIn
Bernstein Burkley
  • Practice Areas
    • Overview
    • Bankruptcy & Restructuring
    • Business and Corporate Transactions
    • Creditors’ Rights
    • Litigation
    • Oil & Gas and Energy
    • Real Estate
    • Real Estate & Commercial Finance
  • Our Attorneys
  • About Us
    • Our Approach
    • History
    • Law Lists
    • Professional Memberships
    • Careers
  • Resources
    • Bernstein’s Dictionary of Bankruptcy Terminology
    • Links
    • Five Minute Legal Master videos
    • Blog
    • Legal Publications
  • News
    • Cases Archive
    • Firm News
    • In the News
    • Industry News
  • Contact
Publications
Publications

Simple Steps To Better Security Interests

Posted on February 20, 2015 by Bob Bernstein

A Short Series On Security Interests For Credit Managers

Part 5: Simple Steps To Better Security Interests

by Robert S. Bernstein, Esquire
Bernstein-Burkley, P.C.

In the past few issues, we have covered some of the basic rules of security interests, as well as some of the pitfalls. Here are some tips that will help your security interests succeed.
GET THE NAME RIGHT. There are so many ways available to make sure of the correct identity of your customer, that it is unforgivable to get it wrong. Start with the credit application. That should ask the right questions. Then it can be verified by several different resources that are available to you through your telephone or your computer. There are many services that can verify the registration status of fictitious or assumed names, corporation, partnerships and the like. Many are available through electronic services, usually for a nominal fee.

GET THE NAME RIGHT II. When typing the financing statements (UCC-1) forms, make sure you index the filing against the correct name. When in doubt, put the debtor’s “real” name and the trade name. Remember, the filing puts the world on notice that you may hold an interest in the debtor’s property. Check the filing fees. Is it worth spending an extra $50 to protect the credit?

CHECK FOR PRIOR FILINGS. Unless you are taking a purchase money security interest in something other than inventory , you should search to see if there are prior filed security interests. This, too, can be done by a number of means, ranging from walking into the filing office to calling any number of search firms to do the job for you. The cost is generally under $100 and will often also give you copies of the filing. Since many states are filing electronically, there are an increasing number of reliable electronic search services. Remember that there is a transition system that allows filing under Former Article 9 to be valid along with those under R9. For the time being, you need to search the proper filing officer(s) under both the former and revised law.

DETERMINE THE RIGHT PLACE FOR FILING. Is your customer a registered entity, like a corporation? If so, what is the state of incorporation and the registration number? If not, what is the proper location of the customer, which designates the proper place of filing?

ASK SOMEONE. Part of the benefit of reading things like this is to let you know that there are options out there. This is not a complete manual on the UCC, but it does tell you there are things that can be done. If you think there is a sale (or a credit) that you want to secure (even after the fact), this gives you some ideas. When in doubt, ask. Most collection agencies or lawyers will give you, without charge, an idea of what can be done. ASK!

Share on:
  • Facebook
  • Twitter
  • LinkedIn

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Dictionary of Credit Terminology
  • Bernstein’s Dictionary of Bankruptcy Terminology
  • Links
  • Five Minute Legal Master videos
  • Blog
  • All Publications
  • Bankruptcy & Restructuring
  • Business & Corporate Transactions
  • Creditors' Rights
  • Oil & Gas
  • Real Estate

Archives

Bernstein Burkley

Copyright © 2025 Bernstein-Burkley

Links
  • Disclaimer
  • Knowledge Base
  • Privacy Center
  • Site Map

Bernstein-Burkley, P.C.

Phone: 412.456.8100

Fax: 412.456.8135

Email: info@bernsteinlaw.com

Connect

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

I accept My Preferences
Close Popup