Best practices for comprehensive state UCC search before new filing

This is solid advice. I'd add that you should also search under any DBAs or trade names the debtor uses, especially if they're in retail or have consumer-facing operations. Those alternative names sometimes show up in older filings.

How do you handle situations where the debtor has recently changed their legal name? Do you search under both the old and new names?

Absolutely search under both names if there's been a recent change. UCC filings under the old name don't automatically transfer to the new name, so you could miss existing liens if you only search the current legal name.

Which states would you say have the most problematic search systems? I know the debtor has facilities in Texas, Florida, and New York.

Texas and New York are generally pretty good. Florida can be a bit quirky with their search logic - sometimes you get different results with slight variations in how you enter the debtor name. I'd definitely recommend doing multiple searches with different name formats in Florida.

That sounds useful - how accurate is it at catching subtle name variations? I've had situations where punctuation differences or corporate designations (Inc vs Incorporated) made filings hard to spot.

It's surprisingly good at that. The tool cross-references different name formats and highlights potential matches even when there are minor differences in corporate suffixes or punctuation. Much more thorough than trying to manually compare dozens of search results.

Good point. This is equipment financing so federal tax liens could definitely impact our position. Where do you typically search for those?

For federal tax liens, you'll want to check with the county clerk or recorder in each county where the debtor has property. Some states also have centralized databases but county-level searches are usually more comprehensive.

Actually depends on the state - some states centralize federal tax lien filings at the state level now. Worth checking both county and state databases to be thorough.

What do you do if you find existing liens during your search? How does that affect your filing strategy?

Depends on the transaction structure and what the existing liens cover. Sometimes you can still proceed if the existing liens don't cover your specific collateral or if you're comfortable with subordinate position. Other times it's a deal-breaker.

That's a great tip I hadn't considered. How recent should the certificate of good standing be?

I usually want something within 30-60 days, especially if it's been a while since the company was formed. Entity names can change through amendments that might not be immediately obvious from older documents.

This is why I always request current organizational documents as part of my due diligence package. Can't rely on what borrowers provide from their files since it might be outdated.

How detailed do you get with the documentation? Screenshots of search results or just summary notes?

I do screenshots of the actual search interface showing the search terms used and results returned, plus a summary memo explaining my search strategy. Belt and suspenders approach but it's saved me in a couple of disputes.

How do you identify related entities that might be worth searching? Corporate family trees can get pretty complex.

I usually ask for organizational charts as part of my due diligence and also check the debtor's recent SEC filings if they're public. Private companies are trickier but you can sometimes spot relationships through shared addresses or officers.

The equipment we're financing includes some manufacturing equipment that gets bolted down. Should I be concerned about fixture filing issues?

Potentially yes. Manufacturing equipment that becomes permanently attached to real estate can be considered fixtures. You'd want to search real estate records in addition to UCC records, and consider whether you need to file fixture filings in addition to your regular UCC-1.

Fixture determinations are very fact-specific and can vary by state law. Might be worth consulting with local counsel if you're unsure about the fixture status of your collateral.

Do you find it catches things that experienced searchers typically miss, or is it more about efficiency and reducing human error?

Both really. It's definitely more efficient than manually comparing dozens of search results, but it's also caught subtle inconsistencies that I probably would have overlooked, especially when dealing with entities that have complex or similar names.