19.4.13.5 UCC Searches

A. UCC searches must be completed no more than 60 days before closing, and the resulting search reports must be submitted to the HUD Closing Attorney for review at least three (3) business days prior to closing. If a Lender requires other searches, the HUD Closing Attorney and/or RC Director may also request to review such searches. The RC Director may authorize the HUD Closing Attorney to rely on searches completed more than 60 days prior to closing when an unanticipated delay in closing results in stale searches. HUD requires but does not collect UCC searches for single-purpose Borrower entities formed within the 60-day period prior to closing.

B. UCC filing searches for the Borrower as debtor must be conducted in the official records of the county in which the Property is located (or other applicable jurisdiction for land records) and in the Office of the Secretary of State where Borrower is organized.

C. All UCC filings identified in the UCC search results will be evaluated by the RC Director and HUD Closing Attorney to determine whether the UCC filing(s) adversely impact the Loan (e.g., evidence conflicts with HUD’s Program Obligations). Unless approved by HUD in writing, UCCs that are unrelated to the Loan must be terminated and must not be shown as exceptions to the Title Policy ( e.g., the UCC filing from the loan(s) being refinanced with a 223(f) or (a)(7)). The FHA Lender’s financing statement for the Loan may be filed in advance of closing, and if so, may be identified in the UCC search results.