Conducting a UCC search, due diligence, and risk mitigation can sometimes be a confusing process, especially for companies and people new to the experience. One question that often comes up from new filers (and occasionally from more seasoned ones, as well) is whether they can file on an individual debtor using his or her driver’s license.
In the most frequent scenario mentioned, the debtor has just moved to a new state, but did not change his or her driver’s license from their old state of residence to their new one. Filers wonder if they should file in both the issuing state as well as the debtor’s new state of residence.
The answer is no, there’s simply no need to do both. The only requirement under the law is that you file in the debtor’s principal state of residence. So if the debtor has moved from California to Texas, but still maintains a California driver’s license, you would file in Texas as that is the debtor’s place of residence now.
There’s no need for you to also file in California just because the debtor has a California driver’s license. As you are not exposing yourself or your company to additional risk, nor are you giving yourself any additional security, it’s a waste of your time better spent elsewhere.