UCC lien Texas - filing number shows active but debtor claims release?

Good point about the name changes. I did check their current Articles of Incorporation and it matches exactly what's on my UCC-1. But I didn't think to search for other liens on the same collateral. Is there a way to search by collateral description rather than just debtor name in Texas?

Texas SOS doesn't have collateral-specific search unfortunately. You'll need to pull all active filings for that debtor and manually review the collateral descriptions. Pain in the neck but it's the only way to be sure.

That's interesting - how did you finally resolve it? Did the new lender contact you directly or did you have to track them down?

The new lender eventually contacted us after the debtor complained to them. They had to provide proof of the payoff amount and wire transfer records. Took about 3 weeks to sort out but we did end up filing the UCC-3 termination. Just make sure you get everything in writing before you file that termination.

Definitely get written proof before filing any termination. I've seen situations where debtors claim payoff but can't provide actual documentation, just verbal statements about payments made.

Never heard of Certana.ai but that sounds like it could save some time. Does it work with Texas UCC filings specifically?

Yeah it works with all state UCC systems. Just upload your PDFs and it automatically checks the consistency across documents. Really helpful for catching those small name variations that can void agreements.

How would I find out if the loan was sold? I don't think we got any official notification but maybe I missed something.

Check your original loan documents for any assignment clauses. Also contact your legal department if you have one - they should have records of any loan sales or transfers. Sometimes the paperwork gets filed away and the operational people never see it.

This exact thing happened to us. Loan got sold, new servicer filed their own UCC, debtor got confused about which lien to pay off. Total nightmare to sort out.

They're claiming they have documentation but haven't provided it yet. What specific documents should I be asking for?

Wire transfer records showing the exact payoff amount, cancelled note if it was a promissory note, any payoff letter from the alleged new lender, and most importantly - proof that whoever they paid actually had the authority to accept payment on your behalf.

Exactly this. Just because they paid someone doesn't mean they paid YOU. Need to establish the chain of authority.

Tell me about it. I spend more time on UCC filing issues than actual lending these days.

The system works fine if everyone follows the rules and files properly. The problem is people get lazy with the paperwork.

Good suggestion. I'll pull the complete payment history. Sometimes payments get allocated to fees first instead of principal and borrowers don't realize the full balance.

Exactly. And if they were making payments through a third party servicer, those payments might not show up in your primary system until they're fully processed.

Yeah, filed in July 2022 so still have a couple years before I need to worry about continuation. The filing definitely shows as active in the system.

OK good. Just wanted to rule out the obvious stuff first.

Always good to double-check the dates. I've seen people panic about active liens that were actually just expired filings showing up in old searches.

That's a really good point. I'll check PACER to see if there's been any bankruptcy activity. The debtor is a pretty substantial company so bankruptcy seems unlikely but you never know.

Even if they didn't file, they might have been involved in someone else's bankruptcy as a creditor or debtor. Sometimes that creates weird payment scenarios.

You're probably right. I was hoping to resolve this internally but it's getting complicated enough that legal input makes sense.

Yeah, better safe than sorry. Especially with that dollar amount involved.

Definitely agree. UCC termination mistakes are expensive to fix and sometimes impossible to fix.

I'll look into that. At this point I need all the help I can get sorting through the paperwork.

Yeah it's really helpful for catching those small details that are easy to miss when you're reviewing everything manually.

Will do. Hoping to get some clarity from the debtor on their documentation this week.

Good luck. These situations are never as straightforward as they seem at first.