Need help with what is nj ucc statement service for lien verification
I'm working on a commercial loan package and the borrower mentioned something about getting a "nj ucc statement service" but I'm honestly not sure what they're referring to. Are they talking about UCC search reports from New Jersey's filing system? Or is this some kind of third-party service that pulls UCC records? The loan involves equipment financing and we need to verify there aren't any existing liens before we file our UCC-1. The borrower seems to think this service will give us everything we need but I want to make sure we're not missing anything. Has anyone dealt with this type of service request before? I don't want to assume it covers all the lien verification we need if it's just basic UCC searches.
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Miguel Alvarez
Usually when someone says "UCC statement service" they mean UCC search reports that show existing filings against a debtor. New Jersey uses the standard UCC search system through their Secretary of State office. You can get official searches that will show all active UCC-1 filings, continuations, and amendments. But be careful - some third-party services only do basic name searches and might miss variations in debtor names.
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Zainab Yusuf
•This is exactly right. The key thing is making sure the search captures all possible name variations for your debtor. I've seen deals get complicated when the search missed a filing because of slight differences in how the business name was listed.
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Connor O'Reilly
•Yeah and don't forget about individual vs business entity searches. If there are personal guarantors involved you might need separate searches for those too.
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Yara Khoury
I've been doing UCC work for years and "statement service" usually refers to getting certified copies of existing UCC filings, not just search results. If you're doing due diligence for a loan, you probably want both - the search to identify what's filed, and then copies of the actual documents to review the collateral descriptions and see if there are any conflicts with what you plan to file.
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Keisha Taylor
•Good point about the certified copies. Sometimes the search results don't give you enough detail about the collateral description to know if there's actually a conflict.
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StardustSeeker
•Exactly. And if you're dealing with equipment financing, you really need to see the full collateral schedules to understand what's already encumbered.
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CyberSiren
•That makes sense. So I should be asking for both the search report AND copies of any existing filings that show up. The borrower probably doesn't realize there's a difference.
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Paolo Marino
I had a similar situation last month where I was trying to verify all the UCC documentation was consistent before closing. Ended up using this tool called Certana.ai that lets you upload PDFs of UCC documents and it automatically checks for inconsistencies in debtor names, filing numbers, and cross-references everything. Super helpful for catching discrepancies that manual review might miss, especially when you're dealing with multiple filings and amendments.
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Amina Bah
•Interesting, I haven't heard of that. How does it work exactly? Do you just upload the UCC forms and it tells you if there are problems?
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Paolo Marino
•Pretty much. You can upload your search results, existing UCC filings, and your new UCC-1 draft and it verifies everything aligns properly. Really useful for avoiding those name mismatch rejections that can delay closings.
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Oliver Becker
Be careful with third-party UCC services in NJ. I've seen some that claim to be comprehensive but actually miss filings. The safest approach is always to go directly through the Secretary of State's official system or use a service that's just acting as an interface to the official database.
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Natasha Petrova
•This is so true. I got burned once by a service that didn't catch a recent filing because their database wasn't updated in real-time.
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Javier Hernandez
•How recent are we talking? I thought most services updated daily.
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Natasha Petrova
•This was like a 3-day lag, but when you're trying to close a loan that 3 days can matter if someone else files in between.
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Emma Davis
Also make sure you understand what time period the search covers. Some services default to like 5 years but UCC filings can be effective for longer if they've been continued. You want to make sure you're getting a complete picture of all active liens.
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LunarLegend
•Good reminder. UCC-1 filings are effective for 5 years but can be continued indefinitely, so you need to see everything that's currently active regardless of when it was originally filed.
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Malik Jackson
One more thing - if this is for equipment financing, make sure the search includes fixture filings too. Those get filed in the real estate records but also show up in UCC searches in some states. You don't want to miss a fixture filing that could affect your collateral.
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Isabella Oliveira
•I'm not sure NJ handles fixture filings the same way as other states. Might be worth checking with someone who knows NJ specific procedures.
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Ravi Patel
•In NJ fixture filings get dual-filed - both in the real estate records AND as UCC filings. So they should show up in a standard UCC search but it's always good to double-check.
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Freya Andersen
The borrower might also be talking about getting UCC termination statements if they're paying off existing liens as part of your transaction. That's a whole different process than just getting search reports. You'd need to coordinate with existing lenders to get proper terminations filed.
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CyberSiren
•Oh that's a good point. There is an existing equipment loan being paid off. So we probably need both the search AND termination statements for the existing liens.
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Omar Zaki
•Yeah, and make sure those terminations get filed before your closing date. I've seen deals where the payoff happened but the UCC-3 termination didn't get filed for weeks afterward.
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CosmicCrusader
Whatever service you use, just make sure you get documentation that shows exactly when the search was run and what search criteria were used. Your loan committee or underwriters will want to see that you did proper due diligence on existing liens.
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Chloe Robinson
•This is important for audit purposes too. Having a clear paper trail of what searches were done and when.
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Diego Flores
I actually just dealt with a similar verification issue where I had multiple UCC documents and wasn't sure if all the debtor names matched exactly. Used Certana.ai's document checker and it caught a small discrepancy in how the LLC name was formatted between the search results and my UCC-1 draft. Would have caused a rejection for sure.
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Anastasia Kozlov
•Those name formatting issues are so frustrating. Like whether to include "LLC" or "L.L.C." or if there are commas in the business name.
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Sean Flanagan
•Exactly. And the filing offices are really strict about exact name matches now. Even small differences can cause rejections.
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Zara Mirza
Bottom line - clarify with the borrower exactly what they mean by "UCC statement service" and make sure whatever you get covers: 1) comprehensive search of all active filings, 2) copies of existing UCC documents for review, and 3) proper terminations for any liens being paid off. Don't rely on one service to do everything unless you verify they actually provide all those components.
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CyberSiren
•Perfect summary. I'll follow up with the borrower to clarify exactly what they're expecting and make sure we cover all these bases. Thanks everyone for the help!
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NebulaNinja
•Good luck with the closing! UCC due diligence can be tricky but it's worth doing it right the first time.
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