Transactional Lien Report

All CALS Terms and Conditions apply and will be enforced.

Definition/Clarification/Disclaimer:

Lien searches are performed on the provided about the seller and is required to be true and correct. CALS does not verify or validate submitted infromation.

NOT Available in ALL States* and time frames will vary depending on State of search.

Transactional Lien Report= Liens on Heavy Equipment are filed against the seller (seller business(s)) name in their respective state of residency and/or incorporation and are listed on UCC Box 4/collateral as either:

1. specifically by make/model/VIN (Specific)

2. All Equipment (Blanket)

The Transactional Lien report searches the provided seller information to locate any applicable liens. If NO applicable liens are located against the seller (seller business(s)), THIS transaction/TLR would be considered to have satisfied 'reasonable due diligence'. Additionally, if liens are located and cleared/released, THIS transaction/TLR would satisfy 'reasonable due diligence'.

THIS DOES NOT MEAN THE ITEM IS LIEN FREE for the BUYER and it is unlawful for them to use their purchase TLR as proof item is lien free if/when they sell. The complexity of heavy equipment liens means each time the equipment changes hands, it would need to be searched against the newest/current owner and seller again, as it is a TRANSACTIONAL requirement. The Transactional Lien Report is a service offered by CALS geared for the private seller to private buyer dynamic. For quality and integrity reasons, this service is ONLY offered to the buyer in each transaction. It documents reasonable due diligence efforts based on *provided seller information. TLR will provide buyers peace of mind, recourse documents and may** satisfy lender requirements if buyer is financing. **Excluded States: Delaware, Illinois, Louisiana, Maryland, Mississippi, Nebraska, Oklahoma, South Dakota. Pricing for remaining states by tier below in page.

Why does TLR require a Buyer and Seller?

The timing to record a perfected lien typically lags considerably behind extension of credit and funding within asset based lending industry.

Therefore, a transaction must be 'in process' to limit the seller's ability to take out additional unknown liens.

CALS will only validate a TLR report between the contracted buyer and seller- Neither buyer or seller is permitted substitution of position or party.

Transactional Lien Report

TLR is comprised of 3 vital steps:

Seller Verification affidavit/Equipment Validation

Customer (Buyer) is required to:
1. Fill out all required Seller information
2. Seller Sign
- Notary highly recommended, but not required

Customer (Buyer) required to submit
1. Valid seller photo ID
2. seller Bill of sale (Seller’s purchase info to see name purchased in)

Seller Search & Results

CALS to perform and document search efforts on *Provided & submitted seller information

Optional Ironcheck™ by Verisk
1. National Equipment Registry for Reported Stolen Equipment

CALS reports search results
1. Liens Not located
2. Liens located
- Will provide copies of applicable liens
3. Summary & suggested next steps

Time Frame/Turnaround = 2-5 business days

Lien Clearance

CALS to perform and document lien release efforts for any applicable liens found in Step 2
1. Seller must provide contact information and authorization to speak with their lien holder

Results:
1. Not Fully Cleared
- Lienholder required proceeds or would not authorize to sell
a. All documentation from lien holder to be included
2. Certified cleared
- All documentation from lien holders to be included

All steps and associated documents are compiled to complete the TLR. See Example Report here:

*CALS does not validate submitted Identification of seller or Bill of Sale documentation. The service and completed report are based SOLEY on the submitted information provided by customer (Buyer). Per CALS Terms and Conditions, indemnification and hold harmless prevail in all services. **CALS does not guarantee any/all lenders will recognize CALS TLR as satisfactory reasonable due diligence.