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If you would like more information regarding any of our tips, please call us at 800-826-5256 or e-mail at SecureYourTomorrow@ncscredit.com

FEBRUARY 2012
Publication Services Group - Tip #17: A Simple But Effective Tool When Using The National Lien Digest (NLD)

In this tip of the month, we would like to share with you a simple but effective NLD feature that will help you better utilize the system and manage critical dates.

The Date Calculator determines a date using a specific length of time from a given date. This is especially helpful when determining on the fly when a critical action needs to be taken.

For example, if you know that a lien needs to be filed within 75 days from last furnishing, you don't need to count this out on a calendar. All you need to know is the date of last furnishing (i.e. 2/1/2012), and the date calculator will do the rest. The date calculator is an invaluable tool to help you determine any important date!



JANUARY 2012
UCC Services Group - Tip #16: Secured Parties Must Monitor Customer's Correct Legal Name for Changes

Section 9-507 of the Uniform Commercial Code stipulates that if a debtor changes their name, the secured party has 4 months from the date of that name change to amend the UCC filing and keep the perfected interest. Section 9-508 further addresses changes to a business that would affect the location where the financing statement must be filed. For example, a sole proprietor becomes incorporated, or one business merges with another, causing its state of incorporation to change. In these situations the secured party has one year to move the UCC filing to the correct jurisdiction and keep the perfected security interest.

Monitoring the legal name and structure of your debtor is an important component of your duties as a credit manager. Contact NCS for guidance.

DECEMBER 2011
Collection Services Group - Tip #15: Utilize Attorneys Who Are Experts in Construction Litigation to Handle Construction Collection Cases

Companies must look to expert attorneys whose core practice is construction law. There is too much at stake and the laws are too complex. Make sure your attorneys are experts in construction litigation.

The attorneys in the NCS network average 26 years of construction litigation experience. They are local to the project and have knowledge specific to the local construction landscape. These are important attributes when hiring an attorney for construction collection cases.

NOVEMBER 2011
Collection Services Group - Tip #14: Understanding Releases and Waivers

When signing any release or waiver for a project, make sure you are only releasing what you intend to release! Points to consider:

• Unconditional or Conditional: Does the language within the waiver reflect the title of the release/waiver and does it express your intention? If the waiver is "conditioned" upon receipt of payment, use a conditional waiver form.
• Final or Partial: If additional payments are to be received, a partial waiver form should be used.
• Project: Is the project information correct?
• Invoices: Are the invoice(s) correctly and clearly identified?
• Amount: Is the amount shown in the waiver the amount you received?
• Date: Is the amount shown correct as to the date released and waived through?

The most common mistakes made with releases and waivers are:
• Signing a waiver, thinking it is conditional, only to find the language was unconditional, and
• Discovering the date released or waived through includes additional invoices that were not part of the amount paid.

OCTOBER 2011
Construction Services Group - Tip #13: Learn the Distinction Between Full Balance Lien and Unpaid Balance Lien States

It's important to understand how the difference between a Full Balance and an Unpaid Balance Lien State can affect your lien rights. In a Full Balance Lien State, the lien is generally enforceable for the full amount owed, regardless of payments made by the owner. An Unpaid Balance Lien State protects the owner from having to pay twice for materials and labor provided to their construction project. When your lien is limited to the unpaid portion of the general contract, it is critical to file the lien as soon as possible, so that it is filed prior to the owner paying the prime contractor. Please refer to the National Lien Digest© for complete information.

SEPTEMBER 2011
UCC Services Group - Tip #12: Always Have the Spouse Sign the Agreement in Community Property States

There are ten community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin and Puerto Rico.

These states consider "community property" as anything that has been acquired during the marriage, other than a gift or inheritance. Even if one spouse earns all the money to acquire the property, all of the property acquired is considered to be community property owned equally by husband and wife.

Community Property Laws fall under Civil Law - Domestic/Divorce - not Article 9. Case law has proven that a bankruptcy filed by a sole proprietor in these specific states has many times held secured creditors to only one half of the debtor's total assets when the spouse did not sign the security agreement and was not named on the original UCC Financing Statement.

NCS recommends that when you are filing on a sole proprietor in one of the community property states, always have the spouse sign the agreement so that he or she can be included on the UCC filing.

AUGUST 2011
UCC Services Group - Tip #11: Secure Your Receivables in New Zealand!

Did you know that you can file UCC's in New Zealand? The same process that is available in the United States is available in New Zealand. For more information, please contact us.

JULY 2011
UCC Services Group - Tip #10: Establish Secured Creditor Status to Secure Your Receivables

Did you know that unsecured creditors in a Chapter 7 bankruptcy statistically do not get paid until the secured creditors have been paid in full? If you've ever received a pro rata payout in a bankruptcy proceeding, you probably would have recovered more money by simply filing a UCC Financing Statement that yields a secured creditor status.

JUNE 2011

Publication and Construction Services Groups - Tip #9: Take Advantage of the NCS QuickTrack Tool

NCS QuickTrack is the exclusive byproduct of the NCS LienTracker® software, and is available with your subscription to The National Lien Digest. QuickTrack instantly determines your state specific deadline dates. Continuously fine tuned to reflect current lien law, QuickTrack is used by NCS to track tens of thousands of construction projects in the United States and Canada. NCS QuickTrack details the actions required to protect your lien and bond claim rights, along with the respective deadlines.

Click here to see a quick overview of how NCS QuickTrack works.

MAY 2011

General Services - Tip #8: Implementing ACH Can Save You Time and Money!

NCS offers e-commerce solutions for payment and remittance of collections, saving you time and money. Implementing ACH (automated clearing house) can save you the cost of processing/accepting a check, which can be up to $35.00 per paper check. ACH also takes days out of the process caused by the mail delay. Click here for ACH Payment Authorization Agreement or call us for more details.

APRIL 2011

Construction Services Group - Tip #7: Familiarize yourself with the states where contract or claim amounts must be included in your notice

Did you know that in nearly 50% of all states the total dollar amount of your contract, or in some instances your claim amount, is required to be included within your notice? While this is something that most companies would like to avoid, it is required for the protection of the owner of the project. Your lien rights may be in jeopardy if you do not include accurate dollar amounts within your notices in those states.

Partner with NCS and learn which particular states require this information to ensure that your notices are protecting your lien and bond claim rights.

March 2011

UCC, Construction, and Collection Services Groups - Tip #6: Find and Sort Project Information Using Online Services

Within the NCS Online Services Website, you can search for specific projects. This capability is available for each of the main NCS services groups:

• UCC Services Group - contained within UCC Monitoring
• Construction Services Group - contained within Lien Project Management
• Collection Services Group - contained within Collection Account Management

While there are slight differences between each service group, the basic functionality and usability is the same. For the purposes of this "Tip of the Month", we will be focusing on the Construction Services Group - Lien Project Management.

In Online Services, the Lien Project Management module may be accessed by selecting the link on the welcome page under the Construction Services Group section.


In the "View" column (Left Side of Search Box), you can set the search filter to:

• Project Status
• NCS Service Request Type
• Collection Status
• ONLY Files with Last Furnishing Dates that are not estimated
• ONLY Files with Mechanic's Lien / Bond Claim Completed

Within the "Project Date Range" column (Center of Search Box), you can also set:
• Date Due Range
• Placed Date Range

And finally you can set additional sorting and searching (Right Side of Search Box):
 
Sort By:
• Debtor
• Project
• Project State
• First / Last Furnishing, etc.

OR search by a specific item:
• Debtor
• Project
• Project State
• Client / Client #
• First / Last Furnishing
• NCS Client # - which you type into the provided comment field

When you have completed filling out the search box, simply hit the "GO" button and Online Services will search your entire list of projects and display the results.

While searching and sorting is an easy process, it is a very efficient way to manage critical projects and keep them up to date.

FEBRUARY 2011

UCC Services Group - Tip #5: Anyone Selling on Open Credit Terms Has Application for a UCC Filing

Whether you are selling equipment, consumables or services, you have the ability to file a UCC to secure your receivables. The UCC filing will provide you with secured creditor status should your customer default or declare bankruptcy. The filing is good for 5 years (it can be continued) and provides an additional level of security.

Those who have filed a UCC, in many instances, are satisfied prior to unsecured creditors receiving any payment. Further, in a recent high-profile Chapter 11 bankruptcy, it is reported secured creditors will receive 94.5% of what they are owed, where the unsecured creditors will receive between 16 to 47 cents on the dollar in payment.

JANUARY 2011

Collection Services Group - Tip #4: Benefits of Doing An Asset Search Prior to Suit

Many creditors may ask, "What is an asset search?". A full service asset search includes:

• Employment
• Business affiliation
• Vehicle ownership
• Real property ownership
• Banking relationships
• Bankruptcies
• Liens
• Judgments
• Notices of defaults
• UCC filings

An asset search can be run at any time, on an individual and/or a business. It also helps to locate addresses & phone numbers.

Typically, once an attorney has filed suit and obtained judgment, creditors look to asset searches to reveal current banking information, properties, vehicles, etc. to attach their judgment to...however, there are creditors who run asset searches before placing their claims with a collection attorney! Why would they run an asset search prior to suit? Because creditors want to know if it is worth the time and money to file suit, move through litigation and obtain judgment.

Running an asset search prior to collection attorney placement enables the creditor to form an idea of where the debtor stands regarding assets. The creditor is made aware of other judgments, liens and bankruptcies that may ultimately hinder their ability to collect, which may be the most important benefit of an asset search.

Although an asset search is not a "crystal ball", for a nominal cost, it provides insight into the debtor's viability and assists creditors in making informed business decisions.

DECEMBER 2010

UCC and Construction Services Groups - Tip #3: Implementing EDI Provides Many Benefits

Electronic Data Integration (EDI) is an interface between our client's internal information and NCS Online Services. Through EDI, new files can automatically be transmitted or existing files can be updated. For the Construction Services Group, files can be electronically placed for tracking notices, liens or bond claims and for the UCC Services Group, original filings, change statements and UCC search requests can be electronically placed and managed.

The benefits are significant:
• Transfer of files in a predetermined standard format, ensures compliance with credit policies and standards.
• Increase data accuracy by reducing errors from data entry.
• Maximize personnel efficiency by saving valuable time that will increase productivity.
• Lower operating costs.
• Streamline management of project information, therefore reducing DSO.

Implementing EDI will give you a competitive advantage! Contact us for detailed information.

NOVEMBER 2010

Construction Services Group - Tip #1: Utilize the Lien Waivers Available Online

Did you know 31 states have specific requirements for lien waivers? Log into your portal and view your projects in the Lien Project Management section of NCS Online Services. The Conditional Partial, Conditional Final, Unconditional Partial and Unconditional Final Waivers are available for all of the projects NCS is tracking for you. You may print the state specific waivers directly from Online Services. Or, where the state does not require a certain template, you may print waivers that are worded to best protect your interests. The waivers may be viewed by others within your company that also have access to Online Services and will be saved in your portal for future reference.

Construction Services Group - Tip #2: Incorporate Recently Released Lien Waivers CD-ROM into Your Process

Have you been in a situation where your customer asks you to sign their lien waiver? Is there too much fine print to read? Prefer to use your legal document instead of what your customer is providing? After numerous requests from our clients, NCS now provides state specific Lien Waivers on CD-ROM. Contact your sales representative to learn more.

Which version of Lien Waivers is best for you? The answer is that you can incorporate both versions. The online waivers are only available for projects in the NCS system. The CD-ROM allows you to print out waivers as needed and is not contingent on NCS having the project information.