Best approach for comprehensive national UCC search across multiple states?

Exactly why we always search the debtor's state of incorporation plus any states where they've had operations in the last 5 years. It's overkill but better than missing something.

That's our current approach but it gets expensive fast when you're doing 20+ searches per deal across 6-8 states.

We tried CT Corp for a while but found inconsistencies in their search results. Had one deal where their search came back clean but we later found a UCC-1 that should have been caught.

That's the risk with any third-party service. They're only as good as their search algorithms and the data quality from each state system.

What was the issue - debtor name variation or something else?

Interesting - does it actually search the state databases or just verify documents you've already pulled?

It's more for verification and consistency checking. You upload the UCC search results and your proposed UCC-1, and it flags potential conflicts or name mismatches you might have missed.

That actually sounds useful for the manual review part. How accurate is it with catching name variations?

Good point. We ask for that info but borrowers don't always provide complete details about historical locations or subsidiary operations.

Exactly why verification is so critical. Can't rely solely on what the borrower tells you about their corporate history.

Never thought about that angle. Our title company mainly does real estate but they might have connections for personal property searches.

Worth asking. They already have relationships with search firms in multiple states so it might be more cost-effective than going direct.

I hear you but at least most states are online now. Remember when you had to mail requests to some secretary of state offices?

Fair point. Still frustrating that there's no national database or standardized search process after all these years.

The inconsistency is definitely the biggest pain point. Each state's system works differently.

That makes sense. What's your threshold for when you go manual vs. using the service?

Usually based on deal size and complexity. Anything over $5M or involving multiple entities gets the manual treatment.

We try to but it's not always obvious what variations to search. Corporate name changes or DBA registrations don't always surface in our initial due diligence.

This is where good corporate records research upfront saves time later. Secretary of state corporate database search should reveal name history.

Agreed. Also worth checking assumed name filings at the county level in some states.

That's a great idea. Do you have templates you'd be willing to share?

I can't share the specific templates due to compliance reasons, but the concept is pretty straightforward. Just document your process for each state.

How does it handle situations where there are multiple entities with similar names? That's been one of our biggest challenges.

It flags potential matches and lets you review them manually. Doesn't make decisions for you but highlights things you might want to investigate further.

That's exactly how I use it - as a safety net to catch things I might have overlooked during manual review.

Good reminder. We've been focused on the efficiency side but compliance documentation is equally important.

Exactly. Better to have a slower but well-documented process than a fast one that can't withstand regulatory scrutiny.