Delaware UCC Search and Filings: What You Need to Know
Delaware Business Incorporators is excited to share that we now offer Delaware UCC Search and Filings services. UCC Filings are a key part of starting and/or building up your small business. Essentially, a UCC Filing or Uniform Commercial Code Financing Statement is a legal record of an agreement between a lender and debtor to fulfill a debt. Think of it like financing a car, except you’re filing a financing statement that names collateral for securing a business loan. Before we go over the services DBI offers, let’s cover a few fundamentals of UCC Search and Filings.
What is a UCC Filing?
A UCC FIling is a shortened term for the “Uniform Commercial Code". A UCC-1 Financing Statement is a legal form that allows a creditor to give notice towards their interest in the personal or business property of a debtor. In essence it is a security agreement between a lender and a debtor and it affords the lender the possibility of acquiring a lien on the equipment and/or inventory of the small business.
What is a lien?
A lien is a legal claim that someone (usually a creditor or lender) can put on your property. It’s also a form of a security agreement that grants the lender the right repossess your property if your debt is not paid.
Who Typically Files UCC financing statements?
Typically, a UCC-1 financing statement will be filed by the lender as these statements protect the lender. A lien protects the interests of the lender in case the debtor defaults on their payments or has to file for bankruptcy. If either of those were to occur, the business assets could be foreclosed, seized, or sold off in order to fulfill the debt to the lender.
What is a Delaware UCC Search?
A UCC search involves searching the Delaware Secretary of State's database of "UCC-1 Financing Statement" filings. Delaware only provides certified searches. There is no "uncertified" or plain UCC searches. Delaware uses name search logic and looks for the exact word. There will be no name variations on the search report.
Due to the way that Delaware's UCC database is structured, a searcher has to input every name variation they can think of to generate a certified listing. Delaware has a list of noise words that are ignored during UCC searches.
Delaware UCC Search and Filing Services
As an authorized Delaware UCC searcher, Delaware Business Incorporators, Inc. (DBI) takes great pride in providing fast, accurate UCC debtor searches using the Delaware Division of Corporations database.
Debtor Fees - DBI charges a fee of $35 per debtor plus the State of Delaware search fee of $25 per debtor. Payment for searching is required in advance.
Certified Copy Fees - In addition to debtor search fees, the State of Delaware charges for certified copies of search results as follows: $10 for the first page and $2.00 for each additional page. DBI charges the same amount as the State of Delaware: $10 for the first page and $2.00 for each additional page.
For example, a 10 page search result, would be charged $20 plus $36 for a total of $56. State of Delaware fees of $10 for the first page plus $2 times 9 additional pages equals $18. (Total State of Delaware fees equal $28 as well as DBI fees of $28 as well.)
For UCC Filing Order Forms click here.
For more information on Delaware UCC Search, click here.
As always, if you have any questions around Delaware UCC Search and Filings, you can contact one of our UCC Specialists directly at 1-800-423-2993 or 302-996-5819.