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Events
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| UCCPlus VS.
Legal Opinion |
Major-market loan transactions
involving UCC security interests are often funded relying entirely on legal
opinions as to the nature of the lenders rights in UCC collateral. The UCC
collateral portion of a legal opinion is very limited and represents
liability to outside counsel. Set forth below is a side-by-side comparison
of the material differences between a UCC legal opinion and UCCPlus.
|
| |
Legal Opinion |
UCCPlus |
| Regulated Insurance Product |
No |
Yes |
| Supported by Claims Reserves |
No |
Yes |
| Supported by Published Independent Financial Strength Rating |
No |
Yes |
| Protection as to Legal Costs to Defend Lender's UCC Security Interest |
No |
Yes |
| Indemnification as to Loss of Collateral Value due to Improper
Attachment, Perfection, or Priority of Lender's UCC Security Interest |
No |
Yes |
| Coverage as to Lender Priority, including "Gap Filings" |
No |
Yes |
| Coverage as to Search Report Inaccuracies |
No |
Yes |
| Coverage as to Authenticity and Authority of Document Signatories |
No |
Yes |
| Protection as to proper Attachment, Perfection, and Priority in All 50 States and the District of Columbia |
No |
Yes |
| Protection for the Entire Life of the loan benefiting Original Lender and all Successors-in-Interest |
No |
Yes |
| Coverage where Borrower's Rights in the Collateral are Insufficient to Support Lender's UCC Security Interest |
No |
Yes |
| Coverage as to Receipt by Borrower of "Value" Sufficient to Support Lender's UCC Security Interest |
No |
Yes |
Coverage where Perfection is Obtained by a Method Other Than the Filing of a Financing Statement No
|
No |
Yes |
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