UCC 11 search South Carolina - anyone know the correct search process?

Thanks for the quick response! When you say exact legal name, do you mean I need to match it character for character including punctuation? I noticed the debtor's articles of incorporation have 'ABC Manufacturing, LLC' but some of their contracts just say 'ABC Manufacturing LLC' without the comma.

Yes, you should search both variations. SC's system can be finicky about punctuation. I always run searches with and without commas, periods, and other punctuation marks. Better safe than sorry on an $850K deal.

This is such an important point! I had a deal almost fall through because of a termination that got stuck in the system for weeks. Always verify the status isn't just 'filed' but actually 'effective'.

Good catch on checking the effective dates. Is there a way to verify termination effectiveness in real-time or do I need to call the SOS office?

The online system usually shows the effective date, but if there's any question I'd definitely call. Their UCC division is pretty responsive in my experience.

SC is actually one of the easier states for UCC searches. Most everything is online and you can get certified copies electronically if you need them for closing documents.

ok thats actually reassuring, thanks. Still wish there was more standardization across states but I guess that's never happening

Interesting, I hadn't heard of that tool. How does it work exactly? Do you just upload the PDFs and it compares everything automatically?

Exactly. You upload your search results, your new UCC-1, whatever other docs you have, and it cross-checks all the debtor name variations, collateral descriptions, filing numbers, stuff like that. Takes maybe 5 minutes instead of the hour I used to spend manually comparing everything.

That actually sounds pretty useful for complex deals. I've definitely missed things when I'm manually checking everything, especially when there are multiple related entities involved.

Good point about fixtures. This is mostly movable equipment but there might be some larger pieces that could qualify. Is there a specific test SC uses to determine what's a fixture?

SC follows the standard fixture tests - degree of attachment, adaptation to the real estate, intention of the parties. When in doubt, I usually recommend filing both UCC-1 and a fixture filing to be safe.

How far back do you typically search for old names? This company has been around for about 15 years but I think they've had at least one name change.

I usually go back to when UCC-1s would still be effective, so 5-7 years depending on when they were filed and continued. Corporate records should show you the name change dates.

Also check if they've had any mergers or acquisitions. Sometimes liens follow the entity through corporate changes in ways that aren't immediately obvious.

WHY do they do maintenance during business hours?? That makes no sense for a system that people need for time-sensitive transactions

I have no idea but it's definitely happened to me more than once. I think they usually post notices on their website but who checks that regularly?

It's a smaller deal, just one bank, but that's a good point about comprehensive searches. At what point would you recommend going that route instead of doing it yourself?

Usually anything over $5 million or if there are multiple lenders involved. For a straightforward $850K equipment deal with one bank, the online search should be fine if you're thorough about it.

That's exactly the kind of thing I'm worried about missing. Did it flag that as a potential issue or did you have to interpret the results?

It flagged it as a potential debtor name mismatch and highlighted both versions so I could see the difference immediately. Really saved me from having to manually compare everything line by line.

That's a really good point. If I find UCC-1s that are coming up on their 5-year mark, should I be concerned about whether they'll get continued?

Depends on your transaction structure. If you're taking a senior position you might not care if junior liens lapse, but if there's any question about priority you'll want to factor that into your risk analysis.

Also worth noting that a lien that lapses and then gets revived through a late continuation can affect priority in some situations. Something to discuss with your client if you find any close calls.

Good catch, I was planning to do that separately but you're right that it's important for the overall lien picture. Do you know if SC's tax lien searches are online too?

Federal tax liens you have to check with the IRS, but SC state tax liens should be searchable through their Department of Revenue. I think there might be a fee but it's not too expensive.