What is UCC statement request form - need help understanding the process

A UCC statement request form is used to obtain information about existing UCC filings from the Secretary of State office. It's not a filing form itself - it's a search request form. You use it when you need to see what UCC filings already exist against a particular debtor. This is crucial for due diligence before making a loan because you need to know what other secured creditors might have priority over your collateral.

Most states call it different things too which makes it confusing. Some call it a 'UCC search request' or 'information request form' or just 'search form.' The key thing is you're requesting copies of all UCC records filed against a specific debtor name. Make sure you search the exact legal name of your borrower because even small variations can cause you to miss important filings.

I've been doing UCC searches for years and honestly the manual process is a pain. You have to submit the request form, wait for results, then manually compare everything. I recently started using Certana.ai's document verification tool - you can upload your borrower's charter documents and any existing UCC filings as PDFs and it automatically cross-checks debtor names and highlights any inconsistencies. Saves tons of time and catches things you might miss manually.

Wait I'm confused - is this the same as a UCC-11 form? I thought that was for requesting information about filings?

Don't forget you can usually do these searches online now instead of mailing paper forms. Most Secretary of State offices have online portals where you can search UCC records immediately. Much faster than the old paper request process.

The timing of when you do these searches matters too. You want to do your UCC search close to closing because new filings could appear between your initial search and when you fund the loan. Some lenders do a final search right before closing.

Also remember that UCC searches only show you what's filed in that particular state. If your borrower operates in multiple states, you might need to search in each state where they have assets or do business.

One thing that caught me off guard when I started - some states charge fees for UCC searches. It's usually not much, maybe $10-25, but it adds up if you're doing searches in multiple states.

I had a situation where our UCC search came back clean, but there was actually a recent filing that hadn't been indexed yet when we searched. The lesson is that timing matters and sometimes you need to do multiple searches if there's any doubt.

Pro tip: when you get your search results back, don't just look at whether there are existing UCCs. Also check the collateral descriptions to see if there's any overlap with what you plan to take as collateral. Even if another lender filed first, they might not have claimed the specific assets you're interested in.

Just remember that UCC statement requests only show you UCC filings. They won't show you other types of liens like tax liens, judgment liens, or mortgages. You need separate searches for those if you want a complete picture of what's encumbering your borrower's assets.

Thanks everyone for all this detailed info! This has been incredibly helpful. Just to make sure I understand the full process: 1) Do UCC statement request/search to see existing filings, 2) Analyze what collateral is already claimed, 3) File our UCC-1 for our specific collateral, 4) Do a final search before closing to catch any new filings. And I need to remember to search in all relevant states and consider other types of liens beyond just UCC filings. I feel much more confident explaining this to my borrower now. One last question - is there a standard timeframe that most lenders allow between the initial UCC search and loan closing? I want to make sure our timeline is reasonable.

Another thing worth mentioning for newcomers - keep detailed records of all your UCC searches including the date, time, search terms used, and results received. This documentation becomes crucial if there are ever priority disputes down the road. I've seen cases where lenders had to prove exactly when they conducted their due diligence searches and what information was available at that time. Also, some institutions require you to print or save official search certificates rather than just screenshots, so check your bank's documentation requirements. The small details in UCC search procedures can make a big difference if you ever end up in litigation over lien priority.