UCC Searches
UCC searches or Uniform Commercial Code searches can be conducted on the county level. They’re useful to information-service companies and financial institutions.
What is a UCC Search?
A UCC search looks up filings made under the Uniform Commercial Code (UCC). The UCC is a law that governs commercial transactions in the United States, and it includes provisions for secured loans, leases, and other transactions when a creditor takes an interest in collateral.
How it works:
- Upon making a loan to a business or individual and taking collateral as security, a creditor files a UCC financing statement. That gives the creditor a priority interest in the collateral, meaning that they can seize it if the borrower defaults.
- UCC searches allow businesses and individuals to find out what UCC filings have been made against them. Such information can be important for a number of reasons, including:
- Obtaining financing: When a business applies for a loan, the lender will typically do a UCC search to see if there are any liens against the business’s assets.
- Buying a business: If you are considering buying a business, you should do a UCC search to see if there are any liens against the business’s assets.
- Monitoring your credit: You can do a UCC search to see if there are any UCC filings against you that you are not aware of.
There are two main types of UCC searches:
- A certified UCC search: This type of search is conducted by a professional search firm and provides a guaranteed accurate report of all UCC filings against a particular debtor.
- An informational UCC search: This type of search can be conducted online or through a government agency, and it is not guaranteed to be accurate.
Benefits of a UCC Search:
- It can help you to avoid surprises when you are obtaining financing or selling a business.
- It can help you to identify and address potential problems with your credit.
- It can give you peace of mind knowing that you are aware of any UCC filings against you.