UCC Search Guide for Solar Developers & Installers
Uniform Commercial Code (“UCC”) filings are company filings, typically from a bank, that list any liens, which are filed in a specific state, against the company in review, such as a project company. SolRiver Capital wants developers and installers to understand why we require a UCC Search during the diligence process prior to you securing an investment from us. In this guide on the UCC Search, we discuss:
- What a UCC Search is;
- Why SolRiver requires it and when it is needed;
- The scope SolRiver requires; and
- How to do a UCC Search.
What are UCC Filings and UCC Searches?
When a company, like a bank, finances something like equipment (for a company, like a project company), they notify the Secretary of State Office of that state with a UCC filing to show to the world that they have a lien on that equipment. A UCC Search shows all UCC filings on record against that company.
Why is a UCC Search needed and when do you need it by?
We require UCC searches on the project company, and sometimes on the seller to confirm that no one has a lien on the project, other than who was disclosed to us. The knowledge of any of the company’s assets used as collateral against a different loan is usually required to close on a new loan. UCC searches should be done no more than 10 days prior to close, and it ideally would be performed at close.
What is the required scope for a UCC Search?
A UCC search should certify that there are no UCC liens on the assets of the entity in question, other than those previously disclosed to us.
How can a UCC Search be done?
Most states offer UCC searches at little cost and are easily found by searching for UCC and the state name in any browser.
SolRiver Capital is a solar investment fund dedicated to financing development, construction, and acquisition of small and mid-size utility-scale projects across the US.
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