Help with UCC lien search - borrower claims no existing liens but I need to verify

This is solid advice. Also make sure you're searching both the debtor's legal name AND any trade names. I've seen liens filed under trade names that don't show up in standard searches.

How far back should you search? Is there a standard timeframe for UCC lien searches?

Good point about tax liens. Where do I search for those? Is that through the IRS directly or local agencies?

Both potentially. Federal tax liens get filed with local recording offices, usually at the county level. Each state handles it differently so you'll need to check the specific requirements for where your borrower operates.

This is getting complicated fast. Maybe there's an easier way to handle all these searches?

That sounds helpful. Does it actually search the UCC databases or just verify document consistency?

It focuses on document verification - making sure names match across all your paperwork, catching filing inconsistencies, that sort of thing. Still need to do the actual lien searches yourself but it helps ensure you're searching with the right information.

YES this is crucial! I've seen collateral descriptions like 'all equipment now owned or hereafter acquired' that basically cover everything.

Wait, so even if my borrower paid off an old loan, the UCC filing might still be active?

Exactly. The lender should have filed a UCC-3 termination when the loan was paid off, but they don't always do it promptly. You might see liens that look active but are actually satisfied.

Any recommendations for good search companies? I'm in the Southeast if that matters.

I do my own searches most of the time but you're right that professionals catch things you might miss. They also know the weird quirks of different state systems.

This is reassuring. I was starting to panic about all the places liens might be hiding.

Been there! The key is being systematic. Make a checklist of searches to run and document everything for your file.

Good advice. Also get the borrower to sign an affidavit stating they have no knowledge of existing liens. Won't protect you legally but at least shows due diligence.

Smart approach. What if they say they lost the paperwork or the previous lender never sent terminations?

Red flag but not necessarily a deal killer. You can search by their name and see what active filings exist, then contact those lenders directly to verify status.

This is so frustrating about UCC searches. Why can't there be a standard format for entity names?

Tell me about it. Each state has slightly different rules and the search systems aren't always forgiving of minor variations.

This is where tools like Certana.ai actually help - they can catch these name variations and inconsistencies before you file your own UCC-1.

Interesting point. So even if there are existing filings, they might not actually create valid liens?

Right, but don't count on it. Treat them as valid unless your attorney tells you otherwise. Just something to be aware of for your risk assessment.

Will do. Thanks everyone for all the guidance. This gives me a solid roadmap for the search process.

Good luck! Thorough lien searches are one of those things that seem overwhelming at first but become routine once you develop a system.