Uniform Commercial Code (UCC) security interests offer significant benefits, like reducing risks for lenders if a debtor defaults.
Secured parties are able to rely on one specific document, the driver’s license, as the sufficient source of an individual debtor name for purposes of a UCC financing statement 1, but using the driver’s license as the source of an individual debtor name is not always as simple as it sounds. In fact, the use of driver’s licenses for individual debtor names may create traps for those who file or search UCC records. Fortunately, diligent secured parties and UCC searchers can manage the risks arising from those traps.
In this white paper, Paul Hodnefield, CSC® associate general counsel, discusses:
- Some of the challenges secured parties face when using the driver’s license as the source of a debtor name
- Best practices for managing the risk
- A few key search guidelines
Fill out the form to the right to download this whitepaper.