UCC Filing Search FAQ: Everything You Need to Know About UCC Searches

Question 1

What is a UCC filing?

Accepted Answer

A UCC filing (Uniform Commercial Code filing) is a legal notice that a creditor files to publicly declare their security interest in a borrower's personal property or assets. It serves as a way to establish priority over other creditors and provides public notice of the lien. UCC filings are typically used for business loans secured by inventory, equipment, or accounts receivable.

Question 2

Why are UCC searches important?

Accepted Answer

UCC searches are critical for lenders assessing existing liens before making new loans, determining priority position in case of default, due diligence for mergers, acquisitions, or investments, asset verification and valuation, legal discovery and litigation support, and bankruptcy proceedings and creditor rights.

Question 3

What's the difference between UCC-1 and UCC-3 filings?

Accepted Answer

UCC-1 is the initial filing that creates the original security interest and establishes lender's priority claim. It's valid for 5 years from filing date. UCC-3 is an amendment that modifies or terminates an existing UCC-1, can continue, assign, or release, and is used for partial releases or corrections.

Question 4

How long do UCC filings last?

Accepted Answer

UCC-1 filings are effective for 5 years from the date of filing. To maintain the security interest beyond this period, the secured party must file a UCC-3 continuation statement within 6 months before the expiration date. If not continued, the filing lapses and the security interest becomes unperfected.

Question 5

How do I search for UCC filings?

Accepted Answer

To search UCC filings: 1) Access the Secretary of State website for the relevant state, 2) Navigate to the UCC search section (separate from business entity search), 3) Search by debtor name (individual or business entity), 4) Review all active and lapsed filings, 5) Note filing dates, secured parties, and collateral descriptions, 6) Order certified copies if needed for legal purposes.

Question 6

How much do UCC searches cost?

Accepted Answer

UCC search fees vary by state, typically ranging from $5-25 for online searches. Certified copies cost an additional $5-15 per document. Some states offer free basic searches, while others charge for any access. Professional UCC search services typically charge $25-75 per search but provide more comprehensive results and formatting.

Question 7

Why do lenders need to do UCC searches?

Accepted Answer

UCC searches are essential for lenders to identify existing liens and encumbrances on collateral, determine their priority position among creditors, assess the borrower's existing debt obligations, comply with regulatory due diligence requirements, make informed lending decisions and pricing, and perfect their own security interests properly.

Question 8

What is lien priority and how is it determined?

Accepted Answer

Lien priority determines the order creditors get paid from collateral. First to file generally has first priority (first in time, first in right). Purchase Money Security Interests (PMSI) can have super-priority. Some liens have statutory priority (tax liens, mechanic's liens). Unperfected security interests are subordinate to perfected ones.

UCC Filing Search FAQ

Quick Navigation

UCC Basics

Professional Use

UCC Filing Basics

What is a UCC filing?

Why are UCC searches important?

What's the difference between UCC-1 and UCC-3 filings?

How long do UCC filings last?

Where are UCC filings recorded?

Types of UCC Filings & Collateral

What types of property can be covered by UCC filings?

What is an 'All Assets' UCC filing?

What's the difference between a purchase money security interest (PMSI) and other UCC filings?

How to Search UCC Filings

How do I search for UCC filings?

What information do I need to search for UCC filings?

How much do UCC searches cost?

What should I look for in UCC search results?

UCC Searches for Lenders & Banks

Why do lenders need to do UCC searches?

When should lenders conduct UCC searches?

What's a UCC search certificate and why is it important?

How often should lenders update UCC searches?

UCC Filings for Borrowers

How do UCC filings affect my business?

Can I see what UCC filings are against my business?

What happens if a UCC filing contains errors?

How do I get UCC filings removed after paying off a loan?

Legal Considerations & Best Practices

What is lien priority and how is it determined?

What's the difference between perfected and unperfected security interests?

Can UCC filings be challenged or invalidated?

What records should I keep for UCC compliance?

Streamline Your UCC & Entity Research

Related Resources

UCC Filings Guide

Due Diligence Checklists

Start UCC Research