How Do I Check If There's a UCC Lien on My Business?

To check for a Uniform Commercial Code (UCC) lien on a business, search for the business (debtor) in the debtor index at the filing office of its home state (where it was formed for LLCs and corporations). Use the exact name listed in its formation record. A formal search using a UCC-11 in Pennsylvania costs $12 per name searched.

What state do I search for a business UCC filing?

You need to search in the state where the business is located. According to UCC 9-307(e), a corporation, limited liability company, or limited partnership is located in the state under whose law it is organized.

A sole proprietorship is searched under the individual owner's personal name in the state where he or she resides, according to UCC 9-307(b)(1). Most filings are with the Secretary of State, but fixture filings go into the county real-property records, according to UCC 9-501(a).

If your business is a Delaware entity, Delaware has restricted most UCC searches to Delaware Authorized Searchers since December 1, 2001, so you may need to hire one of these firms.

What name do I use to search for a business UCC filing?

Use the name listed on the entity's public organic record, according to UCC 9-503(a)(1). The Pennsylvania UCC-11 instructions say to use the exact, full name without omitting, modifying, or abbreviating anything, to include the ending (Inc., Ltd., etc.), and to leave off d.b.a., a.k.a., and f.k.a.

In Pennsylvania, the name of an individual debtor should be the name listed on an unexpired Pennsylvania driver's license or identification card, according to 13 Pa.C.S. § 9503. Trade names are not sufficient to identify a debtor, and a UCC filing with the wrong name is seriously misleading if a search under the correct name would not disclose it, according to UCC 9-506. A second search under your d/b/a can catch (probably invalid) filings put under it. Don't search by address, as the UCC-11 warns that narrowing the search "may result in an incomplete search."

How much does it cost to check for a UCC lien on a business?

A formal search using a UCC-11 in Pennsylvania costs $12 per debtor name searched.

The Pennsylvania fees are nonrefundable and are listed on the Department of State fee page. More is on the UCC section of the DOS website, or call 717-787-1057, option 3. You can request "ALL" (including lapsed filings) or "UNLAPSED" filings. For New York, see the New York Department of State UCC FAQ.

How do I read a UCC-1 filing?

Start with the file number and date assigned by the filing office. The filing generally lapses 5 years from the filing date, according to UCC 9-515, unless a continuation statement is filed in the 6 months before it lapses, which extends it another 5 years from the previous lapse date.

The description of the collateral can be as simple as all assets or all personal property and still be valid under UCC 9-504. All UCC-3 filings (assignments, amendments and terminations) attach to the same file number. There is no dollar amount because UCC 9-502 requires only the debtor, secured party and collateral, and a UCC-1 can be filed before a security agreement is even signed. A UCC-1 alone proves neither the amount due nor a default. On Pennsylvania paper filings, open the image, as the index may be incomplete.

Who is the holder of the UCC-1?

The holder is the secured party listed on the initial statement or any subsequent amendment, pursuant to UCC 9-511. That may be the actual holder or an agent (such as a service company) filing on its behalf, and UCC 9-503(d) doesn't require it to say so.

Read through all of the assignments. Pursuant to UCC 9-514, an assignment can be filed via UCC-3 naming the new assignee, so the holder may be different than the brand you signed with. Match each filing to an agreement by comparing the filing date with your funding date, and the secured party with your funder. If you cannot match one, you can make a written demand under UCC 9-210 for a statement of account or a list of the collateral, and the secured party has 14 days to respond.

Found an MCA company's UCC-1 and worried about new loans or your banks? See what to do when an MCA company has filed a UCC lien on your business. Paid it off? See what is a UCC-1 and how do I get it removed.

Does an empty search mean you're clear?

Empty results mean no filings are indexed under the debtor name you searched as of the search date. The filing office has 2 business days to index a filing under UCC 9-519(h) and 2 business days to answer a search under UCC 9-523. And if the collateral is a deposit account perfected by control, no UCC filing is necessary. We recommend searching again before applying for a new loan.

Frequently Asked Questions

Why do I still have a UCC filing if I have paid off my advance?

When a termination statement is filed, the UCC filing becomes ineffective, but the filing office may keep the debtor's name in the index until a year after the date the filing would have lapsed. So it will still show up in a search, with a termination attached to the file number.

Will a UCC search show judgments or tax liens against my business?

Usually not. Judgments are found on the docket of the court that entered them. Federal tax liens are filed in the location prescribed by state law; for corporations and partnerships, that is keyed to the principal executive office. The New York UCC filing system is an exception that includes federal tax liens.

Can I find UCC filings on my business credit report?

Yes, business credit reports list UCC filings, but they update periodically, not in real time. The only true way to know is the filing office's index.

Should I also search my own name?

Yes, it is a cheap way to make sure you aren't indexed as a debtor in the state where you live. Even if you signed a personal guarantee, you usually won't be listed as a debtor unless you put up personal property as collateral or your business is or was a sole proprietorship.