What is a UCC lien notice - database search confusion

This is really helpful. So when I see multiple UCC-3 filings referencing the same initial UCC-1 number, those are all part of the same secured interest?

Exactly right. The UCC-3 amendments will reference the initial filing number from the UCC-1. Just make sure you're reading them in chronological order because later amendments can supersede earlier ones.

That makes sense about the lapsed filings. How do I know if a continuation was filed properly though? Some of these have dates that seem close to the 5-year deadline.

Continuations must be filed within 6 months before the 5-year expiration date. If it was filed too early or too late, it's ineffective. The SOS database usually shows the effective period dates.

I had a deal almost fall through because we missed a continuation that was filed literally on the last day of the window. Double-check those dates carefully!

Good point about collateral descriptions. Some of these just say "equipment and fixtures" - is that specific enough to be enforceable?

Generally yes, especially for equipment. The UCC allows for reasonably broad descriptions as long as they reasonably identify the collateral. "Equipment and fixtures" is pretty standard language.

How do I verify the debtor names are correct? The company has done some restructuring over the past few years.

Check the Secretary of State corporate records for any name changes, mergers, or amendments to articles of incorporation. Then see if corresponding UCC-3 amendments were filed to update the debtor names on existing filings.

This is where I've found Certana.ai's document verification tool really helpful - you can upload the corporate documents and UCC filings and it instantly flags any name inconsistencies between them. Saves hours of manual cross-checking.

Yes! And search both the current name and any former names. We almost missed a major equipment lien because it was filed under the company's old name from before a merger.

Exactly. The UCC search logic can be really literal - if the secured party filed under "ABC Corp" but you search "ABC Corporation" you might miss it entirely.

Termination statements should reference the initial filing number exactly. If the numbers don't match, the termination might not be effective. What kind of discrepancy did you see?

the original UCC-1 was filed with number 2023-1234567 but the termination referenced 2023-01234567 with an extra zero. is that going to be a problem?

That could definitely be a problem. Minor clerical errors sometimes get overlooked but adding digits to the filing number is more serious. You might want to get a corrected termination filed.

Oh wow, I hadn't even thought about fixture filings. How do I search for those?

You'll need to search the real estate records in each county where the company has property. Look for UCC filings in the deed records or ask the county recorder's office about their fixture filing index.

This is why I always hire a professional UCC search company for big deals. They know all the weird places liens can hide.

That's a great idea. A few of these filings do list serial numbers. Should I be concerned if some equipment on site doesn't appear in any UCC filings?

Not necessarily - equipment purchased after the UCC filing might not be covered unless the collateral description includes after-acquired property language. Check the original financing agreements too.

This is a corporate acquisition so all the debtors should be entities, not individuals. Does that simplify things?

Yes, entity searches are usually more straightforward. Just use the exact legal name as shown in the corporate records. But still watch out for subsidiaries or affiliated entities that might have separate filings.

And don't forget about personal guarantees! Sometimes individual officers sign personal guarantees that get their own UCC filings for personal property collateral.

That sounds really useful. Does it work with different state filing formats or just certain states?

It handles all state formats as far as I can tell. I've used it for deals involving filings from multiple states and it picks up the key data fields regardless of the formatting differences between state systems.

How accurate is the name matching? I worry about false positives with similar company names.

It's pretty sophisticated - flags exact matches vs. similar names differently so you can focus on the real discrepancies. Much better than trying to do it manually with spreadsheets.

Good point. This is mostly standard business equipment though - computers, machinery, vehicles. Should all be covered by UCC filings if there are security interests, right?

For that type of equipment, yes, filing is the typical perfection method. Just be aware that vehicles might also have title liens that wouldn't show up in UCC searches.