PT 7: UCC Searches – What is needed to perform a search?
Posted by Gennine Cooper
August 12, 2020
For the seventh installment in our series on The Perplexing World of Uniform Commercial Code Demystified, we’d like to talk about What is needed to perform a search?
As we’ve learned throughout this series, a Debtor can be an Organization (Corporation, Limited Liability Company, etc.) either Domestic to the U.S. or an International company, or it can be an Individual. Much like part 2 of this series, which indicated how a debtor should be listed on a UCC filing, the searching should match. However, the States have some fail-safes to catch small idiosyncrasies such as ignoring noise words like “a” or “of” and corporate indicators such as “Inc.” and “LLC” in an attempt to return as accurate a result as possible while accounting for possible human error. Therefore:
If the debtor is an organization, the target search name should match the last filed public record as filed with the Secretary of State where the entity is formed. For instance, if the corporation is filed under the name: “ABC Services, Inc.” it should be searched as such. If the organization filed for a name change*, the UCC-1 should be updated to reflect the change in the debtor name, via a UCC-3 Amendment. However, it’s possible that it was not and thus an additional target search name of the previous public record name should also be requested.
If the debtor is an individual, the target search name should match the individual’s unexpired driver’s license or ID card or (if no ID is available), their first and last name. For instance, if the driver’s license or ID card lists the person’s name as Joseph Jackson Smith, the UCC should be found under this name. However, it’s possible it was filed only under the first and last name and thus, most State systems will only allow searching by first and last. The middle name or initial will allow the end user (yourself or counsel) to determine which results belong to your Debtor.
You can request a Debtor Due Diligence Search nationwide with us today either online or by sending your request to firstname.lastname@example.org. Please give us a call if you have any questions or would like additional information. We look forward to hearing from you and stay-tuned for our next segment on Where to Search!
*to enhance your Due Diligence Search, ask Incserv to perform a public record search on previous names of the Organization prior to searching for UCCs as well a Good Standing Certificate to complete your closing documents.