Post-lien searches are the best way to ensure your intentions are properly reflected on record
for all to see when considering your UCC filing procedures.
It comes down to three critical protections to ensure your filing did what you were trying to
perfect for you and your organization:
- Protect against input entry errors. A number or name being off by a single number or
letter can wreak havoc on your filing. - Mistake-free is the way to be. Even if it looks good with all fields filled in, a closer look
is always beneficial to prevent making your filing a potentially hidden lien. - Reveal competing forces. Others may have filed at the same time as you if you are
dealing with a “tricky” savvy debtor situation. This would reveal any additional UCCs filed
from your filing date to the current date.
Even if you are careful, typos can still happen since humans index at the state level. In addition
to typos, the threat of an unfiled UCC5 Correction Statement is a common issue among many
states. The District of Columbia and Florida are a few states notorious for not filing a UCC 5
Correction Statement. Our experience has been that they just fix the error and move on. For
that reason and because of the many nuances in the process, it’s a good idea to trust an expert
to double-check with a post-lien search.
Why It Matters
If appropriately filed in the right place and with the right information, the lender holds onto their
position and will collect if their customer defaults or files bankruptcy. So, with that on the line,
why not give it another look after the fact?
Several states require strict RA9 searches by exact name only. The Capitol Lien team can and
will attempt to reveal the otherwise hidden liens in those exact name search states.
NOT INTENDED TO PROVIDE LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL ADVICE AND SHOULD NOT
BE RELIED UPON AS SUCH.