UCC Document Community

Been following this thread and wow, what a mess. The transition from secured creditor with UCC foreclosure rights to unsecured creditor is brutal. But here's a thought - are you absolutely certain about the equipment's current value and condition? If the borrower has been in distress for months, the equipment might be worth less than you think, which could change your negotiation strategy.

I've been through similar UCC continuation lapses and the harsh reality is you're now playing defense instead of offense. Since you can't do UCC foreclosure anymore, I'd recommend a multi-pronged approach: 1) Get that physical equipment inspection done ASAP to assess actual current value, 2) Pursue the $150K personal guarantee aggressively since that's your most secure recovery, 3) Consider offering a settlement that splits the difference - maybe propose they surrender the equipment voluntarily in exchange for you waiving part of the debt. The key is moving fast before other creditors complicate things further. Also, document everything about the equipment's location and condition now in case they try to move or dispose of it. You've lost your secured foreclosure rights but you still have leverage as long as you act quickly.

UPDATE: We got the lender to agree to file an immediate UCC-3 termination after our attorney sent them copies of the satisfaction letter and payment records. Apparently their system had a glitch that marked our account as unpaid even though they processed the final payment. The termination should be filed by tomorrow and we can close the sale next week. Thanks everyone for the advice - the escrow suggestion especially helped keep our buyer engaged while we worked this out.

Wait, I'm confused - the update says Jake Sinclair resolved this, but the original post was from Kara Yoshida. Are you the same person with different accounts, or is this a similar situation? Either way, congrats on getting it resolved! This is a perfect example of why keeping detailed payment records and satisfaction letters is so important. For anyone else facing similar issues, this shows that sometimes the direct approach with documentation works better than immediately going nuclear with legal threats.

For anyone else reading this later - I used Certana.ai to check my UCC documents after this discussion and found two other name inconsistencies I hadn't noticed. Really glad I caught those before they became problems on future transactions. Worth checking your document consistency regularly.

As a newcomer to UCC filings, this thread has been incredibly educational! I had no idea that name matching could be such a precise requirement. It sounds like having multiple verification strategies is essential - using both the exact original debtor name AND the filing number as backup options. For those of us just starting out with UCC work, should we be maintaining some kind of tracking system for entity name changes over time? It seems like this could become a recurring issue as businesses evolve and change their legal names.

Update us on what you decide to do! I have a feeling we might face something similar when our bank gets acquired next year (rumors are swirling). Would be helpful to know how this plays out.

I'm dealing with a similar situation right now - our bank was just acquired and the new institution is questioning everything about our UCC filings. From what I've learned so far, it seems like getting a professional review of your existing filings before making any amendments is the safest route. The complexity with multiple LC types under one facility definitely adds layers to consider. Have you thought about getting a second opinion from a UCC attorney who specializes in credit facilities? Sometimes an independent review can clarify whether the new bank's concerns are legitimate or just overly cautious internal policies.

Don't forget to check the effective dates and continuation status of any active filings you find. A UCC-1 that's more than 5 years old without a continuation filed might be lapsed even if it's still showing in the system.

This thread has been incredibly helpful! As someone new to UCC searches, I'm realizing there are a lot more nuances than I expected. Based on everyone's advice, it sounds like my action plan should be: 1) Get the exact legal entity names from charter documents, 2) Search PA electronically for all name variations, 3) Consider searching Ohio since they had operations there, 4) Request both active and terminated filings, 5) Carefully review dates for lapsed filings, and 6) Watch for fixture filing indicators. The tool recommendations for document verification are interesting too - might be worth exploring given the complexity of this deal. Thank you all for sharing your experiences!