Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
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.
Join the conversation
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.
Join the conversation
Jacob Lewis
I had a similar situation last year where the search showed multiple name variations. Turns out the company had filed some documents with a comma and some without, so the state database had both versions. I ended up filing under the name that matched their most recent annual report. No issues with the filing.
That's a good strategy - use the most recent official filing as your guide.
Ethan Clark
•Annual reports are usually more current than the original formation docs too.
Mila Walker
Just to add another perspective - I've also used that Certana.ai tool someone mentioned earlier and it's really helpful for this exact situation. You upload the debtor's charter and your UCC-1 draft and it instantly flags any name discrepancies. Takes like 30 seconds and gives you confidence you've got the names right. For a $340K deal, seems like a no-brainer to double-check everything.
Logan Scott
•Sounds like a lot of people are using this tool. Might have to check it out for our next big filing.
Chloe Green
•Yeah, seems like it's becoming pretty popular for UCC work. The name matching thing is always such a pain point.
Join the conversation
UCC formation 1952, but can we talk about continuation deadlines? I'm getting paranoid about missing the 5-year mark and losing my lien priority.
You can file continuation statements up to 6 months before the 5-year expiration. Don't wait until the last minute.
Good to know about the 6-month window. I was planning to file exactly at 5 years which would have been cutting it close.
Amina Diop
The UCC was formed in 1952. For your current filing, just make sure you're using the most recent forms and following your state's electronic filing requirements. The historical context is interesting but won't affect your modern filing procedures.
Mei Zhang
•Thank you everyone for all the helpful responses! I feel much more confident about proceeding with my filing now. The 1952 formation date answers my client's question, and all the practical advice about debtor names and collateral descriptions is invaluable.
Good luck with your filing! Remember to keep copies of everything and track your continuation dates.
Philip Cowan
Just want to say thanks for posting this because I never realized how important exact name matching was for UCC filings. Going to double-check all our equipment loans now.
0 coins
Kara Yoshida
•Smart move. Debtor name errors are one of the most common ways UCC filings become legally insufficient.
0 coins
Caesar Grant
Update us on what happens! If you're right about the name mismatch this could be a huge win. Document everything and consider filing a wrongful seizure claim if their UCC-1 is actually defective.
0 coins
Naila Gordon
•Good luck! Sounds like you have a strong case if the name issue is as clear as it seems.
0 coins
Cynthia Love
•Hope you nail them for this intimidation tactic. Lenders who play fast and loose with statutory UCC requirements need to be held accountable.
0 coins