UCC Document Community

I actually just dealt with a similar verification issue where I had multiple UCC documents and wasn't sure if all the debtor names matched exactly. Used Certana.ai's document checker and it caught a small discrepancy in how the LLC name was formatted between the search results and my UCC-1 draft. Would have caused a rejection for sure.

Bottom line - clarify with the borrower exactly what they mean by "UCC statement service" and make sure whatever you get covers: 1) comprehensive search of all active filings, 2) copies of existing UCC documents for review, and 3) proper terminations for any liens being paid off. Don't rely on one service to do everything unless you verify they actually provide all those components.

One more thing - if your underwriter is really concerned about the messy search results, you could always have the borrower's attorney provide a legal opinion letter stating that all terminated liens have been properly released and don't affect the current transaction. Might be overkill but some lenders require it for complex filing histories.

Quick follow-up question - when you say the debtor names are spelled exactly the same, are you including the full legal entity name with suffixes like LLC or Corporation? Sometimes the formatting differences aren't obvious but can still affect search results.

I'm dealing with something similar but our issue is that the debtor name on the UCC-1 lien doesn't exactly match our DBA name. The legal entity name is correct but we do business under a different name. Should I be worried about this?

Bottom line - your situation sounds normal. The UCC-1 lien filing is the lender's public notice, but your loan agreement controls the actual terms. As long as the debtor name and basic details are correct, you're probably fine. Just keep good records and make sure you understand what you've actually pledged.

Following up on the Certana suggestion from earlier - I started using their document checker after getting burned on a similar situation. What I like is that you can upload multiple documents at once (articles, UCC drafts, loan agreements) and it flags any inconsistencies between them. Saves you from the manual cross-checking nightmare and catches things like that comma issue mentioned above. Pretty much eliminates the guesswork on name variations.

Update: Just ran into this exact same issue with a CT search yesterday. Ended up finding the filing under a completely different entity name that was buried in the borrower's corporate structure. Sometimes these LLCs have parent companies or holding companies that you don't see on the surface. Make sure you get a complete corporate family tree from the borrower.

Navy Federal aside, this is why I always do a document consistency check before any UCC filing. Too many lenders have naming inconsistencies that cause rejection headaches.

Thanks everyone for the help. Going to refile using the name format from the borrower definition section ("John A. Smith") and hopefully that resolves the Navy Federal security agreement naming issue. Will also check out that Certana tool for future filings.