UCC Searches Might Reflect Filings More Current than the Through Date
UCC
Did you know that a UCC search might show UCCs filed beyond the search’s through date? It’s true! Read on to find out why.
At the state filing offices, UCC filings are accepted for filing and entered into the public record. Once every filing from a certain date is posted into the index, the state will advance their through date. A through date is the state’s way of saying, “We can guarantee that everything that was submitted to us for filing as of this date is now on record.” They are not saying, however, “There is nothing more current than the through date present in the data.”
A UCC index is dynamic, growing and changing all the time. The state is accepting new records and entering them into the public record, even as the process is underway to advance the date. Therefore, there are times when filings from beyond the confirmed through date can make their way onto the index.
It’s a slightly different situation for private service companies that maintain a proprietary search system. Private service companies build their search systems by purchasing bulk UCC and lien data from the state filing offices. Some states include a through date with their bulk data while others do not. If the state does not provide a through date along with their data, it is up to the service company to determine the currency of the data and assign a through date.
Figuring through dates is an inexact science. Service companies use complicated algorithms to check what filing dates are present in UCC and lien data to determine the currency of the data, then, to be safe, they back the date up by a few days. Because of this data backdating process, UCCs with a file date more current than the given through date may reflect on a UCC search report.
When reviewing UCC search results, never rely on the most recent filing reflected to determine the currency of the data; always refer to the through date to gauge how current your search report is.