Reflective Searches, Joint Check Agreements & Typos – Weekly Review
Husch Blackwell LLP “When is a Typo in a Loan Document More Than Just a Typo?”
“The Promissory Note referred to the Security Agreement. Unfortunately, the Security Agreement stated that it secured a Promissory Note dated December 13, not December 15… The Seventh Circuit held that the Security Agreement did not grant the lender a security interest in the collateral because it was unambiguous. Even though it was clear the bank made a mistake in preparing the documents, parole evidence could not be used to reform the contract as against the bankruptcy trustee…”
Taft Stettinius & Hollister LLP “Construction State of Repost Affected as Governor Quinn Signs Public Act 098-1161 into Law”
“The Act amends the Illinois construction statute of repose in a way that exposes architects and builders operating in Illinois to new and substantial liability… The practical effect of the Act is that builders, architects, and others involved in construction management now face potentially substantial liability for projects completed decades ago…”
Conduct a Reflective Search after Every UCC Filing
Take a look at this week’s blog post to better understand what a reflective UCC search is and why it is vital for you to conduct the search on every filing.
“Obtaining a reflective search is the best practice to make sure the UCC Financing Statement or UCC change statement has been indexed accurately.”
“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 particular state’s methods and format, and change statements are indexed to the proper original filing”
Joint Check Agreements are now available in NCS Online Services! Simply sign in to NCS Online Services, click Tools & Information and select Joint Check Agreement.
A Joint Check Agreement is an agreement between two parties, allowing one to make payment through a joint check issued to two or more payees.
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