To welcome new readers to the FCS blog, we will be running a “Best of” series over the next several weeks. Check back each week between now and the end of May to read another of our most popular blog posts!
Delaware UCC Search Options
It is important to have a good working knowledge of a state’s search logic prior to ordering or performing UCC searches in that jurisdiction. With so many businesses organizing in the State of Delaware, it has also become a hotbed of UCC searching activity and in this blog post, we offer some information on performing UCC searches there.
Delaware Certified Searches
The Delaware Secretary of State provides certified searches only; there is no plain or uncertified option available from the state. With the exception of a few noise words, Delaware adheres to exact name search logic, meaning no name variations will be included on the search report. Due to the restrictive search logic used to generate a certified listing in Delaware, a searcher has to order a separate certified search for each name variation they can think of and those fees can add up rather quickly.
Delaware Online Searches
UCC searchers looking for a more inclusive and cost-effective search solution in Delaware often look to an online search system that will reveal name variations. The problem with online searching for Delaware is that the state does not make their UCC data available for purchase in bulk. Therefore, in order to offer Delaware searching on their private search system, a service company must purchase Delaware UCC data from a third party source rather than from the state filing office directly.
Third party databases can pose some real problems for UCC searchers because they are built through data collection efforts; essentially, the third party buys copies of filed UCC records and transcribes the data to recreate the state’s index. This transcription process opens the door for errors to be introduced into the data including misspelled party names, erroneous file dates, and sometimes we even see documents left off the recreated index entirely. Ultimately, these data entry errors compromise the integrity of the search result and translate into increased risk for any lender who relies on them to make a funding decision.
The FCS Solution
First Corporate Solutions has developed an innovative solution to help overcome some of the common problems associated with UCC searching in Delaware. Our Delaware UCC search solutions follow a two-step process. First, customers search our online data using flexible, broad-based search logic to generate a preliminary report that uncovers name variations. Then they select from three follow up search options that supplement the online data to ensure the accuracy and completeness of reported liens.
Our follow up search options complement the preliminary online listing to generate the most complete and most accurate DE UCC search available anywhere. Visit our website at http://www.ficoso.com/delaware-ucc-solutions.aspx or call a customer service representative at 800.406.1577 for more information on flexible Delaware search options from First Corporate Solutions.