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For what it's worth, I've had good luck with Certana.ai for exactly this type of verification issue. Upload your search results and original documents and it will flag any missing pieces in the filing chain. Really helpful for catching name variations or missed continuations that could cause problems down the road.
Yara Nassar
•I was skeptical about automated tools for UCC verification but honestly they're getting pretty sophisticated. Especially for catching the little details that human reviewers might miss.
Andre Dupont
•At this point I'm willing to try anything that can give me confidence in these search results. The stakes are too high to guess wrong.
StarGazer101
One more thing to check - make sure you're searching the correct time period. Tennessee's online system sometimes defaults to showing only recent filings. You might need to expand your search date range to capture all the relevant continuation statements.
StarGazer101
•Yeah, for a complete picture you want to search back at least 6-7 years to catch any original filings and their continuation history.
Also make sure you're including both 'filed' and 'recorded' documents in your search parameters. Some continuations get categorized differently in their system.
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Quick question - if the UCC search shows active filings, does that automatically kill the deal? Or are there ways to work around existing security interests?
Not necessarily a deal killer. You can negotiate with the seller to pay off the secured debt, get a release from the lender, or adjust the purchase price. The key is knowing about it before closing so you can address it properly.
Sometimes the equipment subject to UCC liens isn't even essential to your intended use of the property. You might negotiate to exclude those items from the sale entirely.
I just went through this process last month for a warehouse purchase. Found three UCC-1 filings against forklifts and racking systems. Two had been terminated properly with UCC-3 filings, but one was still active. Seller had to provide a satisfaction letter from the lender before we could close. Definitely worth the extra week of due diligence to avoid future headaches.
How long did it take the seller to get the satisfaction letter? I'm worried about delays affecting my closing timeline.
About 10 business days. The lender was pretty responsive once they confirmed the debt had been paid off. Just make sure to request termination documents well before your closing date.
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Arjun Patel
For what it's worth, I've never seen a properly filed continuation actually invalidate a security interest due to portal display issues. The legal effectiveness is based on the actual filing, not the online status. But definitely get it resolved for documentation purposes.
Lara Woods
•Thanks, that's helpful context. I think I'll verify the documents are consistent first, then contact the SOS office if needed.
Jade Lopez
•Smart approach. Document verification first, then escalate to the state if there's actually a filing problem.
Tony Brooks
Keep us posted on what you find out! This kind of search system issue seems to be popping up more frequently across different states. Would be helpful to know how NM resolves it.
Lara Woods
•Will do. Hopefully it's just a system glitch that gets sorted out soon.
Yeah, please update the thread. I file in NM occasionally and this is good to know about.
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Malia Ponder
Just wanted to add that I used Certana.ai's document checker when we had a similar dispute and it was really helpful for organizing our defense. Being able to show that all our documentation was consistent and properly aligned really strengthened our position when the debtor tried to argue our security interest was defective.
Simon White
•That's the second mention of Certana.ai in this thread. Sounds like it might be worth checking out to make sure we haven't missed anything in our documentation.
Malia Ponder
•Yeah, it's pretty easy to use - just upload your PDFs and it flags any inconsistencies. Better to catch potential issues now than have them come up in court later.
Kyle Wallace
Bottom line - UCC 1-103 argument and recourse is a real thing but it's not a get-out-of-jail-free card for debtors. If your security interest is properly perfected and your loan terms were reasonable, you should be in good shape. Document everything about the original loan process and be prepared to show it was arm's length negotiation.
Simon White
•Thanks, that's reassuring. We've got good documentation of the original deal and the borrower was represented by counsel at the time. Should help show it wasn't an unconscionable transaction.
Having borrower's counsel involved in the original deal is huge. Really hard to argue unconscionability when the borrower had legal representation.
Dyllan Nantx
This thread is helpful! I have a Connecticut continuation coming due next month and was worried about timing requirements.
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TillyCombatwarrior
•Make sure you file within the 6-month window before expiration. Connecticut is pretty strict about timing.
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Anna Xian
•Set a calendar reminder for 7 months before expiration to give yourself buffer time.
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Jungleboo Soletrain
Sounds like your lien is fine - just amended for the name change. I'd still recommend getting copies of both the original UCC-1 and the amendment for your files to document the complete chain.
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Rajan Walker
•Smart move. Having documentation of the complete filing history is always good practice.
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Nadia Zaldivar
•Glad we could help sort this out. CT UCC searches can definitely be confusing with name changes.
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