Ring discussed changes to Iowa’s Mechanic Lien law that went into effect on January 1, 2013. The recent changes impacts contractors and suppliers who work with residential property, and Ring explained how to preserve your lien rights.

The recent change to the Iowa Mechanic’s Lien Law was dramatic in the fact that it changes the venue where contractors and suppliers file their mechanic’s liens. Previously, liens were filed in the county where the construction project was located. Now, liens are filed online through the secretary of state. The law also changed how contractors and suppliers preserve their rights to file a mechanic’s lien on residential construction projects, by filing notice of commencements and notices of furnishing through the secretary of state. What this means for contractors and suppliers:

• General Contractors on residential projects must file a notification of commencement within 10 days of commencing work through the Secretary of State registry.
• Subcontractors and material suppliers on residential projects must register their notice of furnishing through the Secretary of State registry to maintain their lien rights and trap unpaid funds owed from the owner to the General Contractor.
• If the General Contractor has not registered a notice of commencement on a residential project, a subcontractor or material supplier must register their own notice of commencement and then register their notice of furnishing.
• If the way subcontractors and material suppliers preserve their rights on commercial projects remains the same, send a notice of furnishing within 30 days of first furnishing.
• Mechanic’s liens for both residential and commercial construction must be filed through the secretary of state.

The only other state that files mechanic’s liens through the secretary of state is Utah. Utah’s law for filing mechanic’s liens through the secretary of state started in 2004. The change in Utah brought about some initial challenges for contractors and has been amended but overall has been accepted. For Iowa, the expectation is that there will be some issues to iron out, but ultimately there will be acceptance.

To learn more, visit the Iowa Secretary of State’s website at https://sos.iowa.gov/ mnlr/index.aspx. To learn about how NACM can help you, contact Chris Ring at NACM’s Secured Transaction Services at chrisr@nacm.org or call 410-302-0767.

UCC Article 9 Amendments
Beginning on July 1, 2013, an amendment to Article 9 of the Uniform Commercial Code (UCC) will take effect. There were various changes, but the change that will most effect trade creditors is how you verify the legal name of a sole proprietor.

The changes allows for states to choose either Option A or Option B.

Option A: AKA the “only-if” rule, requires a filer to provide on the financing statement the name on the debtor’s valid driver’s license issued in the state where they are operating their business. If the debtor does not have a valid driver’s license, the filer must use either the individual name of the debtor (i.e., whatever the debtor’s name is under current law) or the debtor’s surname and first personal name.

Option B: AKA the “safe harbor” rule, leaves intact the requirement that the financing statement use the debtor’s “individual name,” but provides that the name on the driver’s license will also be sufficient as well as the debtor’s surname and first personal name.
Note: Iowa chose Option A

There are vulnerabilities for both options. For example what happens if the person changes their name but does not change the name on their driver’s license (i.e. they got married) In community property states, it may be wise to have the spouse sign the security agreement and file the financing statement in both names in the event of divorce. Also, you have four months to amend a filing in the event of a name change. So on sole proprietor accounts with large outstanding receivables it’s wise to quarterly confirm their name.

With the impending change in July, now is a good time to evaluate how you will implement any changes. For the most part, it is about spending your time wisely and evaluating each customer through a risk filter. What is the payment history? How large is the line of credit? How good is the customer information? When was the last time this information was updated? These are the types of questions you should ask when considering how you update and verify the correct legal name of your sole proprietors.

For more information about how NACM can help you manage the UCC process visit www.nacm.org/welcome-to-nacms-secured-transaction-services.html. For Iowa UCC questions, visit http://sos.iowa.gov/ business/UCCInfo.html. To learn about how NACM can help you contact Chris Ring at NACM’s Secured Transaction Services at chrisr@nacm.org or call 410-302-0767.

This article was the lead piece in the Winter 2013 issue of Heartland Headliner.

The CCRA is unlike NACM’s other longtime designation programs in that it is a standalone program. It exists outside of NACM’s “Career Roadmap” that includes the Credit Business Associate (CBA), Credit Business Fellow (CBF) and Certified Credit Executive (CCE), the latter of which is still NACM’s top-level designation for members.

The CCRA was created after Financial Statement Analysis II was removed from the CBF designation, with the new requirements effective January 1, 2013. NACM’s Education Department updated the extracted course and renamed it Financial Statement Analysis, Interpretation & Credit Risk Assessment to better reflect its emphasis. The updated version is now considered by NACM to be the cornerstone of the CCRA.

“We realized that Financial Statement Analysis II wasn’t for everyone, and that it served as a bit of a roadblock to the CBF for some members. However, we also recognized that some credit department personnel need that in-depth, advanced financial analysis background, which is why this standalone designation was created,” said NACM President Robin Schauseil, CAE.

As with other designation courses, Financial Statement Analysis, Interpretation & Credit Risk Assessment can be completed alone as a certificate session. However, earning the CCRA requires the completion of three courses: Basic Accounting, Financial Statement Analysis I and the new Financial Statement Analysis, Interpretation & Credit Risk Assessment. The methods available to complete each course vary and can be found under “Education” at www.nacm.org. The first opportunity to take Financial Statement Analysis, Interpretation & Credit Risk Assessment is a five-segment session and exam held at Credit Congress from May 18-23.

Though separate from the “roadmap” lineup of certifications, the CCRA will serve as key program for credit professionals tied to deeper financial analysis responsibilities and for those who will be in the future. It is also designed to build background and add key skill sets for those pursuing a designation path already in play.

“If you’ve earned your CBA and want, or need more financial analysis skills, this is for you,” Schauseil said. “It’s a great precursor to the CCE even though it’s not a part of the NACM career roadmap. It’s also a great precursor for NACM's Graduate School of Credit and Financial Management.”

This story was provided by NACM National and was included in the weekly eNews.

These “headliners” have already been announced:

• Dr. Ed Altman - Father of the Z-Score. Esteemed New York University professor, Dr. Altman will teach advanced financial analysis sessions designed especially for our executive-level delegates.
• Bruce Christopher - Back by popular demand.  Bruce will be presenting a variety of fascinating sessions, including Why are Women So Strange and Men So Weird? Staying Energized in a Draining World and The Power of Perception.
• Greg Powelson & Chris Ring of NACM’s Secured Transaction Services.  Greg and Chris bring their usual energy and expertise to their session: Selling to Contractors: Ten Tips to Reduce DSO and Avoid Write-offs.
• Nathan Rader, Dave Curtin and Steve Strong, CCE, Google Inc. Nathan, Dave and Steve engage our Credit Congress audience with the timely and innovative topic: Cloud Apps for Business: How Finance Organizations Can Benefit from Working in the Cloud.

So don’t delay. Register today to take advantage of these great savings!

Join us at the Rio Hotel Las Vegas for the year's largest gathering of business credit professionals in the country.

Register by Friday, December 14 to save $150 off a full delegate registration! Special savings are also available for the first 500 participants to make a room reservation.

Check out more information on the official Credit Congress website!

To the read the rest of the story, visit our blog.

It is also worth noting that the Rio is still offering room rates at $129.00 but this won’t last long.
The Rio Hotel in Las Vegas has agreed to discount the first 500 sleeping rooms in our block for Credit Congress. These rooms will be available at a discounted rate of $129/night (our regular conference rate at the Rio is $155/night).  The block is now open and the Rio has begun taking reservations for the 2013 convention.  A check on October 19 revealed these significantly discounted rooms are still available.  Once the 500 rooms are taken, the contracted rate of $155 applies.

Click here for the housing reservation link.  Members can also access this link and the reservation phone number from the Credit Congress housing page on the official website.  If you book now you can always cancel.  When you make your reservations they will charge you your first nights room, if you cancel they will refund your money.

Thinking about attending the 2013 Credit Congress and Expo at the Rio Hotel in Las Vegas on May 19-22?  Check out this deal:

The Rio Hotel in Las Vegas has agreed to discount the first 500 sleeping rooms in our block for Credit Congress. These rooms will be available at a discounted rate of $129/night (our regular conference rate at the Rio is $155/night).  The block is now open, & the Rio has begun taking reservations for the 2013 convention.  Once the 500 rooms are taken, the contracted rate of $155 applies.

Here is the housing reservation link: https://www.totalrewards.com/hotel-reservations/main/?propCode=RLV&groupCode=SRNACM3.  Members can also access this link and the reservation phone number from the Credit Congress housing page on the official website.

NACM independent study courses presented online are designed to provide a more convenient alternative to traditional courses while also offering a network of support.  Online courses allow the flexibility to choose the most opportune times to study and take exams, be it morning or evening, weekday or weekend. They grant the freedom from being required to attend scheduled classes; however, students follow a weekly syllabus so that they stay motivated to complete their course.

A course facilitator is available for each class to provide assistance. Our facilitators are accessible through email to answer questions, provide guidance and help students prepare for the online exams.

To learn more, visit the NACM website.  Class start soon, so register today!

The Credit Manager’s index reflects the grim reality of the economy in the summer of 2012. It became obvious some months ago that the spring swoon was underway and like the last few years, the summer was an extension of the deterioration. The problems that beset the economy earlier in the year have not abated and now there are some new ones to worry about. Thus far it is hard to see what impact the drought will have on the greater manufacturing and service economies but given the fact that it was the farm sector that helped drive the manufacturers last year, the sudden drop in demand for machinery isn’t helping. The biggest declines were seen in the service categories such as retail and finance but there appears to be some signs of rebound in theconstruction category. There is evidence of some slowdown in the health care sector and that is likely related to the confusion over the fate of the Affordable Health Care Act.

That's right, there is a whole lot of circus fun coming up at this year's NACM Central Region Credit Congress, September 19-20 in St. Charles, Missouri.  If you missed this year's national Credit Congress, this is a great chance for you to catch up on topics of interest to credit professionals, as well as get in some valuable networking.  With more than 20 education sessions, there's something for you.

Download the Attendee Guide for more or information, or contact Maggie Bessenbacher at 888.222.1447 for more information.

In all seriousness, NACM Heartland understands that accounts that are 60 days past due or more become increasingly difficult to collect. So, why wait? Clear off your desk of those accounts before you leave for your summer vacation or long weekend. We're here to help.

For more information, contact Maggie Bessenbacher at 888.222.1447 or maggie@nacmheartland.com.

And, of course, we hope you have a safe, happy and restful holiday!