UCC search required before filing amendment - timing question

This happened to us last year! Filed a UCC-3 amendment only to discover later that someone had filed a termination on the original UCC-1 six months earlier. Complete waste of time and money.

Wait, so the system accepts invalid amendments? That seems like a huge flaw in the process.

The filing offices generally don't cross-reference filings during submission. They're mostly checking format and required fields, not the underlying validity of the security interest.

Thanks - I'll get the search going today. Should I be looking for anything specific besides the original UCC-1 status?

Check for any subsequent UCC-3 filings (amendments, assignments, partial releases) and verify the debtor name exactly matches what you're using on your new amendment. Debtor name consistency is crucial.

Also look for fixture filings if any of your collateral could be considered fixtures. Delaware has specific rules about that.

Interesting - how does that work exactly? Do you just upload the PDFs?

Yeah, super simple. Upload both documents and it cross-checks everything automatically. Caught a debtor name variation in my last filing that would have caused problems later.

That sounds too good to be true. How accurate is the AI verification?

Pretty accurate in my experience. It's not replacing human review but it definitely catches the obvious stuff that can slip through when you're rushing.

Agree completely. The cost of a UCC search is nothing compared to losing your collateral position.

Especially with inventory as collateral - that's usually high-value stuff you don't want to lose lien priority on.

Good point. The original filing just says 'equipment' so we should be fine adding inventory without any conflicts.

Perfect. Just make sure the amendment language is clear about what you're adding versus what was already covered.

Also double-check that your loan documents actually authorize the additional collateral. UCC filing is one thing, but the underlying security agreement needs to match.

We're filing before - the inventory acquisition happens at closing. Is that a problem?

Not a problem as long as your security agreement covers after-acquired property. Most standard forms do, but worth confirming.

Also make sure you have a continuation strategy in place. Original filing from 2022 means you'll need to continue by 2027.

Yeah it's been pretty glitchy lately. I usually try early morning or late evening to avoid peak times.

You can also use third-party search services if the state portal is giving you trouble. Costs a bit more but more reliable.

How much does something like that cost? Is it worth it for smaller filings?

The value is definitely there when you consider the cost of having to refile or losing your security interest. Much cheaper than dealing with problems later.

I'm skeptical of AI tools but I have to admit manual document comparison is error-prone, especially when you're under time pressure.

Thanks everyone. Getting the search done today and will double-check all the details before filing.

Smart move. Let us know how it goes!

Great point. I always print to PDF and save everything in the deal folder.

Also helps if you ever need to prove the timeline of your filings for priority disputes.

Will do - appreciate all the advice from everyone here!