Before you conduct a UCC search you need to find the correct name of the debtor. Under Article 9 a financing statement is enough but only if it gives you the correct name of the debtor or if you can disclose the record with a search of the correct name. These rules mean a search would only be sufficient to disclose all interests in the debtor’s collateral if the correct name is used.
However, for the unprepared searcher using just the correct name of the debtor for the search may not gain any effective records. The UCC records may index a financing statement or other lien under something other than the debtor’s correct name under specific circumstances. These records can be an effective way of perfecting the security interest despite the variations in the debtor’s name.
Sometimes a debtor may change their name, business structure or become a part of transactions that have an effect on the names that are included in a UCC search. There are a few common situations in which you will need to look under additional debtor names to get the information you need.
First if a debtor changes their name you will need to look for both old and new records under each name. Second is if a new debtor becomes bound by the other party’s security agreement then you must look under both names for the information needed.
Remember that the goal of a UCC search is to locate all active records that have an interest in the debtor’s collateral. Sometimes you will have to do a search that gives you results beyond the correct name of the debtor in order to get this information.
MLQ Attorney Services is an attorney services firm located in Atlanta. On their website, you can order UCC searches online.