Legal Research

A significant change in UCC filing took effect in July 2001.  Prior to that date UCC documents were recorded either at a centralized state agency or at a local recording office.  At the time there were over 4,200 locations in the U.S. that recorded UCC?s.  Revised Article 9 of the Code mandated effective July 2001 that all UCC documents were to be filed and recorded at a state level agency, with the exception of real estate filings such as farm-related real estate.  According to the UCC Filing Guide 24, now less than 3% of filings are done so at the local level.  However, there is a caveat - any existing UCC filings if previously filed locally can be renewed or extended at the local level, instead of being renewed at the state level.

Although there are significant variations among state statutes, the state level is now the best starting place to uncover liens filed against an individual or business but is not the only place to search.  Strict due diligence may require a local search also, depending on the state.

© excerpt from the Business Background Investigations book.