The filing of false or fraudulent Uniform Commercial Code (UCC) financing statements has long been a problem. Although the number of such records filed is relatively small, they can have a serious impact on the victim named as debtor. These false financing statements are used to intimidate, harass, or defraud another party. The victims are often government officials or those involved in legal proceedings against the filer, such as prosecutors, judges, and foreclosing creditors.
Court Finds UCC Debtor Name Incorrectly Extracted from Driver’s License
By Paul Hodnefield, Esq. It is sometimes not enough for a secured party to determine the correct name of a debtor for purposes of filing a UCC financing statement. The correct name must also be correctly provided or it could
UCC EXPERT’S CORNER: Debtor’s Ongoing Use Did Not Make Former Name Sufficient for Financing Statement
By Paul Hodnefield, Esq. Secured parties are generally solely responsible for providing the correct debtor name when filing a UCC financing statement. Failure to conduct thorough debtor name due diligence may inadvertently lead to filing under an incorrect debtor name,