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This whole thread is why I always include a UCC name verification step in my loan closing checklist. Too many ways for this to go wrong if you're not systematic about it.
Zainab Omar
•Smart approach. Do you have a standard form or process you use for that verification?
Nothing fancy - just a checklist that includes pulling current corporate standing, comparing to loan docs, and doing a preliminary UCC search. Catches most issues before filing.
One more thing to consider - make sure your collateral description is solid too while you're refiling. I've seen people fix the name issue only to get rejected again for vague collateral language.
Usually being too generic. Like just saying 'equipment' when they should specify 'manufacturing equipment' or 'office equipment' or whatever. The more specific the better.
Also seen people mess up the 'all assets' filings by not being clear about what categories they mean. Specificity is key.
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This thread is making me paranoid about all our UCC filings. Should I be checking every debtor quarterly for name changes? That seems excessive but I'm worried about missing section 9-506(c) issues.
Set up alerts with your state's SOS office if they offer them. Some states will notify you of changes to entities you're monitoring.
Good idea. I'll look into the notification services. This stuff keeps me up at night.
Final thought - the UCC revision committees have been discussing clarifying the 9-506(c) standard for years but it's still as murky as ever. Until they fix it, we're stuck with this guessing game on what's seriously misleading.
Ava Johnson
•Thanks everyone for the advice. I'm definitely filing the UCC-3 amendment tomorrow. Better to be safe with the 9-506(c) standard being so unclear.
Smart choice. Keep documentation of when you discovered the name change too, just in case timing becomes an issue later.
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Dmitry Popov
I had a similar issue but it turned out there was actually an error in my continuation filing that made it ineffective. The debtor name had a slight variation from the original UCC-1. Might be worth double-checking your documents to make sure everything matches exactly.
Dmitry Popov
•I used one of those document checking services - Certana.ai I think. Uploaded both my original UCC-1 and the continuation and it immediately flagged the name discrepancy. Had to file an amendment to fix it.
I'm definitely going to check that out. Better to know now if there's a problem than find out later when it's too late.
Update: I called the New Mexico UCC office and they confirmed my continuation was filed and is valid. They said there's a known issue with their search database not updating promptly but the filing is definitely on record. Thanks everyone for the advice!
Great news! Glad you got it sorted out. Hopefully they fix their search system soon.
Mei Chen
•That's exactly what happened to me. The filing was there all along, just not searchable. Thanks for the update!
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Carmen Vega
Just wanted to follow up on the Certana.ai mention earlier - I was skeptical at first but tried it for a complex UCC-3 amendment and it really did catch issues I missed. Especially helpful when you're dealing with multiple related filings and need to ensure consistency across all documents.
That's good to know. I might try it before submitting my continuation just to be safe.
Yeah I've heard good things about it from other lenders. Seems like it could prevent a lot of headaches with rejected filings.
Zoe Stavros
Remember that Maine has a 6-month grace period after the 5-year lapse date, but the UCC becomes unperfected during that time so you lose priority. Better to file the continuation well before the lapse date to avoid any gaps in perfection.
Jamal Harris
•I always recommend filing continuations at least 60 days before lapse. Gives you time to fix any problems if the filing gets rejected.
Exactly. And if you catch problems early, you have time to research solutions instead of panicking at the last minute.
Lauren Wood
Just went through this exact process last month with equipment financing. The Texas SOS online filing system is pretty user-friendly once you have all your details straight. Takes about 10 minutes to complete the UCC-1 if you have everything ready.
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Lauren Wood
•The hard part is getting the document details right beforehand. The actual filing is straightforward.
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Ellie Lopez
•Texas charges $15 for electronic UCC-1 filings, pretty reasonable compared to some states.
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Chad Winthrope
One more thing about free templates - make sure they include proper default and enforcement provisions. You want clear language about what happens if the borrower doesn't pay and how you can recover the collateral.
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Chad Winthrope
•That's wise. Even if the UCC filing is perfect, weak enforcement language in the security agreement can create problems down the road.
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Paige Cantoni
•Self-help repossession rules vary by state too, so definitely get local legal advice on the enforcement provisions.
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