UCC search what is the best way to verify filing status before loan closing

This is so important! We had a UCC-1 get rejected because the debtor name on our filing didn't exactly match what was in the secretary of state records. Even a missing comma can cause problems.

Yeah the name matching is brutal. Some states are more forgiving than others but you really can't take chances with debtor names.

What about fixture filings? If they have real estate involved those can be tricky to find in a standard UCC search.

Great point! Fixture filings are usually recorded in the real estate records, not the central UCC filing system. You need to search both places.

This is getting complicated... how do you keep track of all these different search requirements?

How does that work exactly? Do you just upload PDFs and it compares them?

Yeah, exactly. You upload the charter documents, existing UCC filings, and your new UCC-1 draft. It automatically cross-checks all the debtor names and flags any inconsistencies. Really helpful for complex deals with multiple entities.

That sounds like it could prevent a lot of headaches. Name mismatches are such a common reason for UCC filing rejections.

Good point. I always check the filing dates on any existing UCCs to see if they're still valid.

What happens if a UCC-1 lapses? Does it automatically get terminated or does the secured party have to file a UCC-3 termination?

If it lapses due to no continuation being filed, it just becomes ineffective. No termination needed. But if the debt is paid off, the secured party should file a UCC-3 termination statement.

This is where I always get confused. How do you know if something is a registered organization versus an individual for UCC purposes?

Registered organizations are entities like corporations, LLCs, limited partnerships - basically anything that had to file formation documents with the state. Individuals are just people, sole proprietorships without formal entity structure.

That's a good tip. The online systems aren't always real-time.

Some states are better than others with their online systems. Delaware and Nevada are usually pretty fast with updates.

Yes! Those blanket UCC-1 filings from asset-based lenders can be tricky. They might not show up if you're only searching for specific equipment types.

How specific should your collateral description be on the UCC-1? Is it better to be broad or narrow?

Generally broader is better for perfection purposes, but you want to make sure it accurately reflects what you're actually securing. Don't over-claim collateral you don't have a security interest in.

That's really thorough. Do you have a checklist you follow for these searches?

I keep a standard list of name variations to try: with/without commas, abbreviated words (Corp vs Corporation), different punctuation, etc. It's saved me from missing filings multiple times.

That's a great point. How do you even find out about old entity names?

Check the corporate history in the secretary of state records, ask the borrower directly, and look at any merger documents. Sometimes you can find clues in other public filings too.

This is getting really complex. Maybe I should just hire a professional search company for this deal.

What should you look for when reviewing professional search results?

Make sure they searched all the right jurisdictions, check that the search names match your debtor exactly, and verify that they included all entity types you requested. Also look at the dates - are they searching recent enough filings?

These name consistency issues are such a pain. Good thing you caught it early.

Definitely. Better to find these problems before closing than after when it's too late to fix them easily.