UCC searches are utilized in order to verify existing liens - confused about proper due diligence process

This is solid advice. I learned the hard way that equipment financing can get messy when borrowers move equipment around. Always search the state of incorporation AND any state where they've operated the equipment for more than 4 months.

Quick question - what about equipment that's been titled in different states? Do UCC searches pick up titled equipment liens or is that a separate search requirement?

Good point about federal liens. I've been focusing so much on the UCC aspects that I almost forgot about tax lien searches. This deal is getting more complex by the day.

Tax liens are definitely a separate search requirement. UCC searches won't show federal or state tax liens, but those can definitely impact your security interest priority.

That sounds incredibly useful. How does it work exactly? Do you just upload PDFs of your search results and UCC-1?

Exactly. Upload your search results, your charter docs, and your proposed UCC-1. It automatically checks for name consistency, identifies potential issues, and flags anything that might cause filing problems. Saved me from a major perfection disaster.

I've been manually comparing these documents for years. Something like this would save hours of cross-checking names and entity details.

That's exactly why you need to search everywhere. Equipment financing is unforgiving - one missed lien can destroy your entire security position.

Learned that lesson the expensive way. Now I search every state where the borrower has ever done business, even if it seems excessive.

This is exactly the kind of detail that keeps me up at night. How do you ensure you're using the exact right name format for each state?

I always pull the current certificate of good standing from each state and use that exact name format. Some states have different requirements for punctuation and entity designations.

Smart approach. I also keep a checklist of each state's specific name formatting requirements. Delaware is particularly strict about exact matches.

You're right about not rushing. I'm already pushing back the loan committee meeting to next week. Better safe than sorry with a deal this size.

Absolutely the right call. I've seen too many deals go sideways because of inadequate due diligence. Take the time to do it right.

It's definitely complex, but that's why thorough due diligence is so important. The rules exist for good reasons, even if they're frustrating to navigate.

I get that, but when you're dealing with mobile equipment across multiple states, it feels like you need a PhD in secured transactions just to avoid missing something obvious.

Good point. I've seen situations where equipment shows multiple liens but only one is actually active. How do you verify which liens are still valid?

You usually need to contact the secured parties directly to verify loan status. Pain in the neck, but necessary if you see multiple filings on the same equipment.

Can you recommend a good search company? I've been using our usual provider but they seem less familiar with multi-state equipment issues.

I'll send you a DM with our preferred vendor. They specialize in equipment and know how to trace equipment across state lines.

That's brilliant. I didn't even think about searching under trade names that might not be immediately obvious from the main corporate documents.

Exactly. The tool cross-references all the entity information and flags potential search terms you might miss. Really useful for complex corporate structures.

Will do. Thanks everyone for the advice. I'm feeling much more confident about the search process now.

Good luck with the due diligence. Equipment financing can be tricky but sounds like you're taking all the right precautions.