Need help with UCC lien search in Texas - debtor name variations causing issues
I'm working on a due diligence project for a potential equipment acquisition and running into problems with my UCC lien search in Texas. The target company has operated under several variations of their business name over the years, and I'm concerned I might be missing active liens. Their corporate charter shows 'ABC Manufacturing Solutions LLC' but I've seen invoices with 'ABC Mfg Solutions' and 'ABC Manufacturing Sol LLC'. When I search the Texas SOS UCC database, I get different results depending on which name variation I use. Some searches show 2-3 active UCC-1 filings while others show none. The company has significant equipment financing history so I know there should be liens. How do I make sure I'm capturing all possible UCC filings? Are there specific search strategies for Texas that account for these name variations? This is for a $2.8M equipment purchase so I can't afford to miss anything.
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Edison Estevez
Texas UCC searches can be tricky with name variations. You need to search every possible permutation of the debtor name. Try dropping common words like 'LLC', 'Inc', abbreviating 'Manufacturing' to 'Mfg', and searching both with and without punctuation. Also search the individual names of any guarantors if you have them.
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Emily Nguyen-Smith
•This is exactly right. I learned this the hard way when I missed a $400K lien because I didn't search 'ABC Mfg Sol' - just the full name variations.
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James Johnson
•Also check if they've had any DBA filings. Those alternate names need to be searched too.
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Sophia Rodriguez
The Texas SOS system is pretty basic compared to some states. You really need to be systematic about this. I usually create a spreadsheet with every possible name combination before I start searching. Don't forget to check predecessor companies if there were any mergers or acquisitions.
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Jibriel Kohn
•Good point about predecessors. How far back should I go? This company has been around since 2018.
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Sophia Rodriguez
•I'd go back to formation. UCC-1 filings can be continued indefinitely so old liens might still be active.
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Mia Green
•Just make sure you're checking continuation dates. A lot of people assume 5 years and done but many get continued.
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Emma Bianchi
I had a similar situation last month and ended up using Certana.ai's document verification tool. You can upload the company's charter documents and any UCC filings you find, and it cross-checks everything to make sure the debtor names align properly. Saved me hours of manual comparison and caught two name discrepancies I would have missed.
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Jibriel Kohn
•That sounds helpful. How does it work exactly?
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Emma Bianchi
•You just upload PDFs of the documents and it automatically compares debtor names across all of them. Really straightforward and caught issues I never would have spotted manually.
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Lucas Kowalski
UGH the Texas system drives me crazy!!! Why can't they have better search logic like other states? I spend forever trying different combinations and still worry I'm missing something important.
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Olivia Martinez
•I feel your pain. Been there so many times.
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Charlie Yang
•At least Texas is better than some states. Try doing this in Louisiana sometime...
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Grace Patel
One trick I use is to search using just partial names. So instead of 'ABC Manufacturing Solutions LLC' try just 'ABC Manufacturing' or even 'ABC'. You'll get more results but at least you won't miss anything. Then you can narrow down which ones actually relate to your target company.
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ApolloJackson
•Good strategy but be prepared for a lot of false positives if it's a common name.
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Grace Patel
•True, but better safe than sorry on a multi-million dollar deal.
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Jibriel Kohn
•That makes sense. I'd rather wade through extra results than miss a critical lien.
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Isabella Russo
Don't forget to check if the company has changed their registered address. Sometimes that can affect how their name appears in filings. Also, if they've had any corporate restructuring, you might need to search parent/subsidiary names too.
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Jibriel Kohn
•How would I find out about corporate restructuring?
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Isabella Russo
•Check their corporate filings with the Texas Secretary of State. Look for amendments to their charter or merger documents.
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Rajiv Kumar
I always search both exact matches and broader searches. Also make sure you're looking at active vs terminated filings. Some people forget to file terminations so you might see old liens that look active but aren't.
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Jibriel Kohn
•How can you tell if a lien is actually still active?
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Rajiv Kumar
•Check the filing date and look for any UCC-3 termination statements. If there's no termination and it's within the effectiveness period (or has been continued), assume it's active.
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Edison Estevez
•Also contact the secured party if you're unsure. They should be able to confirm if the debt is still outstanding.
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Aria Washington
This is why I love Certana.ai's UCC verification tool. You upload all the documents you're working with and it flags any inconsistencies in debtor names automatically. Takes the guesswork out of whether you've covered all the name variations.
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Liam O'Reilly
•How accurate is it? I'm always skeptical of automated tools for legal stuff.
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Aria Washington
•It's been spot-on in my experience. Much better than trying to catch everything manually.
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Chloe Delgado
Another thing - check the collateral descriptions carefully. Sometimes companies file UCC-1s with very broad collateral descriptions that might cover equipment you're looking at even if the debtor name search didn't turn them up initially.
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Jibriel Kohn
•Good point. What should I be looking for in collateral descriptions?
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Chloe Delgado
•Look for 'all equipment', 'all personal property', or specific equipment types that match what you're acquiring. Sometimes filings use serial numbers too.
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Ava Harris
•And don't forget about fixture filings if any of the equipment might be considered fixtures.
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Jacob Lee
Been doing UCC searches for 15 years and Texas is definitely one of the more challenging states. The key is being methodical and not rushing. For a $2.8M deal, consider hiring a professional search company if you're not 100% confident in your results.
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Jibriel Kohn
•Any recommendations for professional search companies in Texas?
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Jacob Lee
•There are several good ones. CT Corporation and National Corporate Research are reliable, though they can be pricey.
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Emily Thompson
•For that size deal, the cost of a professional search is worth the peace of mind.
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Sophie Hernandez
Last month I used Certana.ai after missing a continuation filing in a manual search. The tool caught it immediately when I uploaded the original UCC-1 and the continuation - showed me exactly where the names didn't match perfectly. Really wish I'd known about it sooner.
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Jibriel Kohn
•That's exactly the kind of thing I'm worried about missing. How much does something like that cost?
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Sophie Hernandez
•The value is definitely there when you consider the alternative of missing a lien on a multi-million dollar transaction.
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