The following addresses the practical and legal issues surrounding the deployment of the patented Blok Box and its cloud-based control software.
It accomplishes this through proprietary cloud software and a wireless device that is installed on the actual asset. Installations may be accomplished through any number of options, including through the leasing company’s own sources, or more conveniently, through a nationwide network of installers.
The Blok Box IoT program allows the equipment to work normally until there is a default by the borrower, at which point the lender or lessor can instantly disable the equipment. Once the default is cured, the lender can immediately return the equipment to normal operation. Both the disabling and re-enabling of the equipment is performed remotely through a secure cloud software program, controlled by the lessor.
Thus, every creditor could technically enter a debtor’s property and mechanically disable their collateral, provided that the borrower permitted them access to do so – an unlikely scenario.
Most typically, the secured creditor must obtain a court order to allow it to enter the debtor’s premises to enforce its rights under the UCC. Obtaining a court order is both time consuming and expensive; often exceeding many months, while the debtor continues their use of the asset. In many cases the costs of repossession outweigh the financial benefits of recovering the collateral.
Until now, most creditors have been unable to exercise their full range of rights under the UCC. The Blok Box IoT programs have turned those tables; now lessors can have the full leverage of the broad powers of UCC without the need for the creditor to take any additional steps. There is no need for a court order or a legal proceeding of any kind.
Once the collateral is inoperative, the debtor immediately understands that this lender must be paid on time as a priority.
Blok Box completely changes the lender/lessee relationship; it provides absolute payment leverage, offering unmatched risk mitigation. When a borrower is aware of this leverage, they are far less likely to go into default. The debts secured by Blok Box therefore tend to be the debts that are paid without delay on the day they are due. The invoice for the loan protected by Blok Box moves to the top of the pile every month.
In addition, the Blok Box IoT program has the ability to locate collateral. So, in the rare instance where the borrower ceases all communication, even after a shut down, the lender can more readily recover the collateral, even if it has been relocated from the place of its initial installation.
