Need Help with UCC-11 Form Search Results - Missing Critical Filing Info

Good point about the DBA angle. I hadn't considered that. The borrower does have a few trade names they operate under. Should I be searching those separately too?

Absolutely. And make sure you're searching both the legal entity name from their charter documents and any trade names. The UCC-11 might pick up filings under different name variations that are all the same company.

That sounds really helpful. Does it handle the name variation issues automatically or do you still need to identify all the possible name formats?

It's pretty smart about catching variations - punctuation, spacing, entity type abbreviations like LLC vs L.L.C. Just upload your documents and it highlights any potential matches or discrepancies across all the filings.

I've been manually doing this kind of cross-checking for years and it's such a pain. Might have to look into that tool.

That makes sense. Is there a standard way to trace these filing chains or is it just a matter of going through each one manually?

Most states have a "related filings" section on their UCC search portals, but it's not always reliable. Sometimes you have to cross-reference the original filing numbers mentioned in the continuation or amendment forms.

Tell me about it. I had a deal almost fall through because nobody caught that the UCC-1 had "Corp" and the loan docs had "Corporation" - lender freaked out thinking the lien wasn't perfected.

exactly! and then you have to explain to clients why this tiny detail could invalidate their security interest. its ridiculous

Right, but how do I know if the broad collateral description actually covers the specific equipment in my loan? The UCC-11 shows "machinery and equipment" but my loan is secured by very specific manufacturing equipment.

Machinery and" equipment would typically cover manufacturing equipment unless'there s something very unusual about it. The key is whether a reasonable person would understand that your specific equipment falls under thatcategory.

Be careful though - I've seen cases where overly broad descriptions got challenged. If it's a significant loan you might want to get a legal opinion on whether the collateral description is sufficient.

Good catch. The borrower is incorporated in Delaware but operates in Texas. I was searching Texas first since that's where their main facility is.

Yeah, you need to search Delaware for UCC-1 filings on entity debtors. Texas would only be relevant if there are fixture filings or specific state requirements.

How did you figure out they were related? Was it obvious from the filing dates or did you have to dig deeper?

Had to look at the actual UCC-3 forms, not just the search summary. The amendment forms referenced the original filing number and explained what was being terminated vs continued.

The equipment is bolted down but I think it's still removable. Would that typically be considered fixtures or personal property for UCC purposes?

That's a gray area that depends on state law and how permanently attached it is. If there's any doubt, smart lenders file both a regular UCC-1 and a fixture filing to cover all bases.

Which tool did you use? I'm definitely interested in something that can automate this process.

Certana.ai - you just upload all your documents and it shows you the connections between filings. Really helpful for complex situations like yours where there are multiple filings with name variations.

Good point. A couple of these filings are from 2018 so they'd be getting close to expiration if they weren't continued.

Exactly. Look for UCC-3 continuation statements filed before the 5-year mark. If the original lender didn't file continuations, those liens might have lapsed even though they still show up in searches.

This is why I always set calendar reminders for continuation deadlines. Too easy to let a perfected lien lapse by missing the deadline.

That's a crucial point I hadn't fully considered. We need to map out not just what liens exist but their relative priority positions.

Right. And if you're adding new collateral or modifying existing security interests, you'll want to make sure your new filings don't inadvertently subordinate your position to existing liens.