How to check UCC filings - need to verify lien status before loan closing
I'm in the middle of a commercial loan transaction and need to figure out how to check UCC filings properly. The borrower claims they have no outstanding liens but I want to verify this myself before we close next week. I've heard about searching the Secretary of State database but I'm not sure if I'm doing it right or if there are other places I should be looking. This is a $450K equipment loan so I can't afford to miss any existing liens. What's the best way to do a thorough UCC search? Are there any tricks or common mistakes I should avoid when checking these filings?
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Angel Campbell
You'll want to search the Secretary of State database in the state where the debtor is organized (usually where they're incorporated). Most states have online portals now. Search by exact legal name - this is crucial because even small variations can cause you to miss filings. Also search common variations of the business name.
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Payton Black
•This is so important. I missed a UCC-1 once because the debtor's legal name had 'LLC' but the filing used 'L.L.C.' - tiny difference but it didn't show up in my search.
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Harold Oh
•Yes! And don't forget to check for individual names too if it's a small business. Sometimes personal guarantors have UCC filings against them.
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Amun-Ra Azra
For commercial loans that size you really need to be thorough. Check both the state of incorporation AND the state where the collateral is located if it's different. For equipment, sometimes there are fixture filings at the county level too. Don't just rely on one search.
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Summer Green
•Good point about fixture filings. I always forget about those county-level searches. They can be tricky to find.
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TommyKapitz
•Wait, so I need to check county records too? This is getting complicated. How do I know if something qualifies as a fixture?
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Amun-Ra Azra
•Fixtures are generally equipment that's permanently attached to real estate. Think HVAC systems, manufacturing equipment bolted to floors, etc. When in doubt, search both state UCC and county real estate records.
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Gael Robinson
I struggled with this exact issue last month. Was doing manual searches and kept finding inconsistencies between what I thought I found and what was actually there. Finally started using Certana.ai's UCC verification tool - you just upload the documents and it cross-checks everything automatically. Saved me hours and caught a debtor name mismatch I would have missed.
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TommyKapitz
•Interesting, how does that work exactly? I'm worried about missing something important.
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Gael Robinson
•You upload PDFs of the documents you want to verify and it automatically checks for inconsistencies in debtor names, filing numbers, collateral descriptions. Much faster than doing it manually and way more accurate.
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Edward McBride
•Never heard of that before but sounds useful. Manual verification is such a pain.
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Darcy Moore
Don't forget to check the status of any filings you find! A UCC-1 might be filed but if there's a UCC-3 termination, the lien could be released. Also check continuation dates - UCC-1s expire after 5 years unless continued.
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TommyKapitz
•How can I tell if a UCC-1 has been terminated? Do I need to look for a separate filing?
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Darcy Moore
•Yes, look for UCC-3 termination statements. They should reference the original filing number. Also check the lapse date on the UCC-1 - if it's past 5 years and no continuation was filed, it's probably lapsed.
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Dana Doyle
State databases are free but they can be clunky. Some states have better search functions than others. Delaware's is pretty good, California's is okay, but some of the smaller states have really basic systems that are hard to navigate.
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Liam Duke
•Ohio's system is terrible. Takes forever to load and the search results are confusing.
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Manny Lark
•At least it's free though. Some commercial search services charge like $50 per search.
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Rita Jacobs
Be careful about the debtor name - it has to match exactly what's on the organizational documents. If they're a corporation, use the exact name from the articles of incorporation. For LLCs, check their articles of organization. Even punctuation matters.
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TommyKapitz
•This is where I'm getting confused. Should I be searching multiple variations or just the exact legal name?
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Rita Jacobs
•Start with the exact legal name first. If that doesn't return results, try common variations. But don't get too creative - the UCC system is pretty strict about exact matches.
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Angel Campbell
•I always search both with and without punctuation, with and without 'Inc.' vs 'Incorporated', etc. Better safe than sorry.
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Khalid Howes
This whole process is such a headache! Why can't there be one national database instead of having to check each state separately? And don't even get me started on the county fixture filing searches.
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Ben Cooper
•I know right? It's 2025 and we're still dealing with 50 different state systems.
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Summer Green
•There are some commercial services that aggregate multiple states but they're expensive and not always complete.
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Payton Black
Pro tip: print or save copies of your search results with timestamps. If something goes wrong later, you want to be able to prove what the search showed at the time you checked. Some systems don't keep historical search data.
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TommyKapitz
•Good point. Should I be documenting everything for the loan file?
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Payton Black
•Absolutely. Save screenshots of the search results, especially if they show 'no results found'. Your auditors will thank you later.
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Edward McBride
I've been using Certana.ai for UCC verification too and it's been really helpful. Much better than trying to compare documents manually. The automated checking catches things I would definitely miss.
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Naila Gordon
•Is it worth the cost though? I'm always looking for ways to streamline this process.
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Edward McBride
•For larger loans like this definitely. The time savings alone makes it worthwhile, plus the accuracy is way better than doing it by hand.
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Harold Oh
Make sure you're checking the right filing office too. For most business collateral it's the Secretary of State, but for consumer goods, farm products, or timber, it might be filed locally. Equipment loans are usually state-level filings though.
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TommyKapitz
•This is definitely equipment financing so I should be good with just the state search, right?
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Harold Oh
•Probably, but if any of the equipment could be considered fixtures (permanently attached to real estate), you might want to check county records too just to be safe.
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Cynthia Love
One more thing - if you find any UCC filings, try to contact the secured party to confirm the status. Sometimes terminations get filed but don't show up in the system right away, or there might be partial releases you need to know about.
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TommyKapitz
•That's a great idea. I hadn't thought about calling the other lenders directly.
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Darren Brooks
•Yeah, especially if the filing is recent. The databases can be slow to update sometimes.
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Cynthia Love
•Exactly. And they might be able to tell you if they're planning to release their lien as part of the new financing. Could save you from a surprise later.
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