Hunting for Hidden Liens

Database Searches Provide
Robust Due Diligence

In those jurisdictions where state search logic is strict, a certified or limited search is ideal for confirming that your UCC filing is in compliance with Article 9, but falls short of discovering hidden liens during the due diligence process. Capitol Service has a fix for that! We have identified several jurisdictions with restricted logic and are now offering an additional Database Search product that provides a better shot at finding mis-indexed or hidden liens.

Though Double Bubble was in the wrong when filing their financing statement, if the Secretary of State had mis-indexed the filing, the burden of discovering the hidden lien would have fallen squarely on the searcher’s shoulders. Additionally, ancillary liens like Federal and State tax liens might be found within the UCC index, but follow very different rules when it comes to the Debtor name.

Tell your CSR you’d like a Database Search with your next UCC search and we’ll help give you the most robust due-diligence product possible.