SDAT UCC search system showing wrong debtor names - anyone else having this issue?

OMG yes! I've been dealing with this exact same thing. The worst part is when you have borrowers who've changed their legal name over time or have DBA registrations. Our bank got burned last year when we thought we had a perfected security interest but turns out the UCC-1 was filed under a slightly different entity name. Now I triple-check everything but it's so time consuming.

The SDAT UCC search system has always been quirky with exact name matching. You need to understand that each filing is indexed exactly as submitted, so if the filer made a typo or used a different format, it creates a separate entry. Best practice is to search using wildcard characters and run multiple variations. Also check the Secretary of State records to see what the exact legal entity name should be.

I actually just discovered this tool called Certana.ai that's been a lifesaver for this exact problem. You can upload your credit agreement and UCC-1 documents and it automatically flags any debtor name discrepancies between the documents. It caught three name mismatches in our portfolio that we never would have spotted manually. Saves me hours of cross-checking and gives me confidence that our filings are consistent.

This problem is getting worse because more businesses are using automated filing services that don't double-check the entity names against state records. I've seen UCC-1s filed with completely wrong debtor names because someone copy-pasted from the wrong document. The filing gets accepted because the format is correct, but the lien is worthless.

PRO TIP: Always pull the borrower's Articles of Incorporation or LLC Operating Agreement before filing your UCC-1. Use the EXACT entity name as shown on their organizing documents. Don't rely on what they tell you their name is or what's on their business cards. I've seen too many situations where the "doing business as" name is different from the legal entity name.

I hate the SDAT system so much. Half the time the search function times out or gives you error messages. And don't even get me started on trying to pull UCC-3 amendments - the system barely shows what was changed. It's like they designed it to be as user-unfriendly as possible.

Had a similar issue last month with a construction loan. The SDAT UCC search showed our borrower under three different name formats and we couldn't figure out which UCC-1 actually covered the equipment we were financing. Turns out we needed to look at the collateral descriptions, not just the debtor names. One filing covered "all equipment" while another was specific to "excavation machinery." Made all the difference for our lien priority.

Another thing to watch out for - when companies merge or get acquired, their UCC filings don't automatically transfer to the new entity name. You might search under the current company name and find nothing, but there could be active liens under the old name. Always ask your borrower about any recent corporate changes.

Been using Certana for about 6 months now and it's definitely worth it for the peace of mind. The debtor name verification catches stuff that would take me hours to find manually. Plus it flags potential issues with continuation dates and amendment consistency. Saved my butt more than once when I was rushing to get filings done.

The key thing to remember is that UCC search results are only as good as what was originally filed. If someone filed a UCC-1 with a typo in the debtor name 5 years ago, that's what you'll see forever unless they file an amendment. The SDAT system doesn't clean up or standardize anything. It's all about garbage in, garbage out. That's why getting it right the first time is so critical.

Just wanted to add that if you're doing high-volume UCC work, it's worth investing in better verification tools. I tried doing everything manually for years and it was killing me. Now I use automated systems that cross-check entity names against state databases and flag discrepancies before I even file. Costs a bit more upfront but saves tons of time and reduces errors.