UCC Search Guide
UCC Search Guide for Solar Developers
Uniform Commercial Code (“UCC”) filings provide records of, any liens, which are filed in a specific state, against the company in review, by the creditor thereof. 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?
A UCC search reveals any individuals or entities that have filed a claim against that company, business property, or other assets pledged on the loan. The Uniform Commercial Code (“UCC”) applies to any transaction intended to create a security interest or lien against an individual or entity. To perfect their security interest or lien against the property, the creditor must make a proper UCC filing. A UCC search using the legal name of the company in review 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, to confirm that there are no liens on the project, other than those disclosed to us. Future lenders will require disclosure of any collateralized project assets when evaluating the project’s eligibility for an additional loan. UCC searches should be done no more than 10 days prior to the intended closing date, and would ideally be performed at the closing of the loan.
What is the required scope for a UCC Search?
A UCC search should certify that there are no liens or problematic security interests attached to the assets of the entity in question, other than those previously disclosed to us.
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.
How can a UCC Search be done?
Most states offer UCC searches at little or no cost and can be easily found on the Secretary of State website for the state where the project asset is located.