Keeping a Record Current

A certificate describes an asset at a moment in time. Assets change: buildings are refinanced, paintings travel, patents lapse, royalties arrive. ACAN keeps the record current by adding each event as it happens, so anyone relying on it sees the asset as it is now, and how it got there.

Nothing is overwritten

Every change is added to the record as a new event. An old appraisal is not replaced by a new one; both stay, with their dates and experts, so the history of the asset's value is visible. When an asset leaves the system, a final event is recorded and the history remains intact.

What is watched, by asset class

• Property and land. The record is re-confirmed on a regular cycle, and monitored for new liens, unpaid property tax, damage or loss, lapsed insurance and sale.
• Objects. Existence and condition are re-checked on a set schedule and after every movement, such as a loan to an exhibition or a change of vault.
• Vehicles, yachts and aircraft. Mileage or flight hours, maintenance, inspections and insurance are recorded as the asset is used.
• Wine and spirits. Holdings are reconciled with the bonded warehouse, and cask regauges are recorded.
• Patents and trademarks. The registries are watched for maintenance fee deadlines, challenges to a patent's validity, renewal deadlines and conflicting assignments.
• Music and media rights. Each royalty statement is checked against the recorded ownership shares, and new ownership claims and termination notices are tracked.

New appraisals

Values move, so assets are re-appraised by independent appraisers on a schedule suited to the asset class, and when an event calls for it, such as a sale, a loan or a new offering. Each appraisal is added with its date, method and appraiser.

Income

For assets that earn income, such as rent or royalties, the receipts are checked against the leases, licenses or recorded ownership shares and attested on the record. A licensed issuer uses those attestations when it pays holders. ACAN attests; the issuer carries out the payment.

When something goes wrong

Some events suspend the certificate until they are resolved, for example a lien no one disclosed, a lapsed insurance policy or an object that cannot be matched to its fingerprint. See certificate status for what that means for owners and holders.