UCC filing database search showing wrong debtor info - system glitch?

Good point about using the exact legal name. Also check if some of those filings might be for related entities or subsidiaries. Mountain View Equipment LLC vs Mountain View Equipment Co. vs Mountain View Equipment Inc. could all be different legal entities even though they look similar.

This is exactly why I always cross-reference the debtor's EIN or state registration number when possible. Names alone aren't reliable enough for due diligence.

Never heard of Certana.ai but that sounds useful. How does it handle variations in how debtor names are formatted across different filings?

It's pretty sophisticated - catches things like 'LLC' vs 'L.L.C.' or missing commas that might cause search inconsistencies. Definitely helped me identify which filings were actually for the same entity vs different ones.

Certified copies are the gold standard but they take time and cost money. For quick due diligence screening I need something faster.

True, but better safe than sorry when you're dealing with six-figure loans. A $25 certified copy fee is nothing compared to missing a senior lien.

I do both - quick screening first, then certified copies for anything that looks questionable or material to the transaction.

Good question - I checked the filing status and they all show as active, but the dates range from 2019 to 2024. Some should have lapsed by now if they weren't continued properly.

That's a red flag right there. UCC-1 filings are only good for 5 years unless continued. Anything from 2019 should have lapsed unless there was a continuation filed.

So frustrating that basic data quality isn't enforced at the filing stage. Why accept a UCC-1 if the debtor name doesn't match state business records?

Because the filing offices don't verify accuracy - they just check that the forms are complete and fees are paid. It's up to the filer to get the debtor name right.

Which is exactly why we end up with these database inconsistencies. The same entity gets multiple variations of their name on file depending on who did each filing.

Which service did you use? I'm dealing with similar confusion on a current file.

Certana.ai - you upload the UCC documents and it does the cross-checking automatically. Caught the dissolved entity issue immediately.

I always do multiple search variations - exact name, partial name, phonetic variations, and common abbreviations. Then cross-reference against business entity records.

That sounds time-consuming but thorough. I might need to upgrade my search process too.

It is time-consuming but missing a lien is way worse than spending extra time on searches. I've seen deals blow up because someone relied on inadequate UCC searches.

So true. Delaware's system is pretty good but try searching in some of the smaller states - it's like stepping back in time.

At least most states have moved to electronic filing. Remember when you had to mail requests and wait weeks for responses?

Absolutely right. The database is just an index - the real information is in the actual filings. I always pull the documents for anything material to my transaction.

Problem is that pulling individual documents for every search result gets expensive fast, especially when you're not sure which ones are relevant.

That's where document verification tools come in handy - you can upload multiple filings and let the software sort out which ones are actually for your debtor.

Glad you got it resolved! Which verification service did you end up using?

Certana.ai - just uploaded all the UCC documents as PDFs and it sorted out which ones were actually relevant to my borrower. Definitely worth it for complex searches like this.

Good to know there are tools available for this kind of verification. I'll have to check that out for future searches.