UCC search showing weird results - need help understanding what I'm seeing

It's manufacturing equipment - specifically a CNC machining center. The collateral descriptions I'm seeing are pretty vague though, just says 'equipment' or 'machinery' in most cases.

Vague collateral descriptions are unfortunately pretty standard. As long as the debtor name is close and the filing dates make sense with when the seller would have financed the equipment, you're probably looking at the right filings.

That's a good point about the entity records. Did you end up finding liens you weren't expecting?

Actually yes - there was an older UCC-1 that was still active that didn't show up in my initial search because the debtor name was formatted differently. Cost me an extra week of due diligence but saved me from a major headache later.

This is why I always recommend doing searches on every possible name variation. Better safe than sorry when you're talking about that much money.

Interesting, I hadn't heard of that tool. Is it specifically designed for UCC searches?

It's more of a document verification tool that works really well for UCC stuff. The workflow I used was uploading the search results PDFs along with the equipment docs, and it highlighted all the name variations and dates so I could see the connections clearly.

I've used similar tools before but they usually miss the nuances of UCC naming rules. How accurate is it with the matching?

They gave me what they said was the filing number but when I search it, it comes back as 'not found' or 'invalid number'. Starting to wonder if they have their facts straight.

That's a red flag. Either they gave you the wrong number or there's something they're not telling you about the financing situation. I'd ask them to provide the actual UCC-1 document, not just the number.

Could also be they're confusing it with a different type of filing number. Some people mix up UCC filing numbers with loan numbers or other document references.

That's exactly what I'm seeing! Some have the comma, some don't, some spell out 'Limited Liability Company' instead of 'LLC'. The dates seem consistent though - mostly from 2019-2021.

The date consistency is actually a good sign. It suggests these are probably all the same entity just with different name formatting over time. Focus on the most recent filings first.

Also check if any of the older filings have been terminated. If you're seeing UCC-3 termination statements, those liens are no longer active even if the original UCC-1 still shows up in search results.

We have a lawyer involved but they're more focused on the purchase agreement side. I was hoping to get the UCC research sorted out first before involving them in the lien analysis.

Smart approach. Getting your research organized first will save you money on legal fees since they won't have to do the basic search work.

Exactly. Come to them with specific questions about the filings you found rather than asking them to start from scratch.

We're supposed to close next week, which is why I'm getting nervous about these search results. The seller is pushing for a quick close but I don't want to rush past any red flags.

Don't let them pressure you into skipping proper due diligence. A week should be enough time to get clarity on the UCC situation if you focus on the right areas.

Agreed - rushing through UCC due diligence is how people end up buying equipment with unexpected liens attached. Take the time you need.

That's a really good point. I see the same bank name on three of the filings, but two others show different lenders. Could mean separate financing for different equipment.

Exactly. The ones with the same bank are probably related, and the different lenders might be for unrelated equipment or facilities. Focus on whether any of the collateral descriptions could include your CNC machine.

Also check the dates on those different lender filings. If they're much older, they might not even be relevant to the current equipment inventory.

Two people have mentioned that tool now. Is it complicated to use or pretty straightforward?

Really straightforward - you just upload PDFs and it does the cross-checking automatically. Takes a few minutes instead of hours of manual comparison.

Yeah, the interface is pretty intuitive. Much better than trying to compare documents side by side in separate browser tabs.

I didn't think to look for continuations specifically. Would those show up in the same search or do I need to search separately?

They should show up in the same debtor name search as UCC-3 continuation statements. Look for filings from this year that reference the original filing numbers.

Continuations are crucial for older filings. If there's no continuation statement, the original UCC-1 might have already lapsed and be inactive.

Tell me about it. I expected this to be straightforward but it's turning into a research project.

Welcome to the wonderful world of secured transactions! It gets easier once you understand the patterns, but the first few times are definitely confusing.

At least nowadays we have better tools than we used to. Back in the day, this would have meant calling the filing office and hoping someone could help over the phone.

Good point. The seller mentioned they'd handle any existing liens but I want to make sure I understand exactly what we're dealing with first.

Smart approach. 'We'll handle it' is fine but you want to see the UCC-3 termination statements filed before or at closing to make sure the liens are actually released.

And get copies of everything for your records. You'll want proof that the liens were properly terminated in case any issues come up later.