UCC Document Community

Ask the community...

  • DO post questions about your issues.
  • DO answer questions and support each other.
  • DO post tips & tricks to help folks.
  • DO NOT post call problems here - there is a support tab at the top for that :)

Noah huntAce420

UCC 9-622 enforcement notice requirements - am I calculating the timeframe correctly?

I'm dealing with a collateral enforcement situation and trying to make sure I understand UCC 9-622 notification requirements properly. We have a defaulted equipment loan where the debtor stopped making payments 4 months ago. The collateral is manufacturing equipment worth about $180k and we're looking at repossession. My question is about the timing for sending the required notice under 9-622 - do I count business days or calendar days for the notification period? And does anyone know if there are any specific format requirements beyond what's in the statute? I've read through 9-622 multiple times but want to make sure I'm not missing something that could invalidate our enforcement action later. The debtor has been completely unresponsive so far but I want to do this by the book.

Remember that 9-622 is just the start. Once you send the notice and wait out the required period, you still need to conduct the disposition in a commercially reasonable manner. Document everything about your sale process too - advertising, bidding procedures, price negotiations, all of it.

0 coins

Exactly. And if there's a deficiency, you'll need to prove commercial reasonableness to collect it. Better to over-document than under-document.

0 coins

Xan Dae

•

Commercial reasonableness is such a fact-specific standard. What's reasonable for one type of collateral might not be for another.

0 coins

Has anyone dealt with 9-622 notices where the debtor filed bankruptcy right after receiving notice? Wondering how that affects the enforcement timeline and whether the automatic stay kicks in immediately.

0 coins

That's what I was afraid of. Adds months to the process depending on which chapter they file.

0 coins

Hopefully our debtor doesn't go that route but good to know in case they do. Thanks for bringing it up.

0 coins

Angelina Farar

UCC filing for short form ip security agreement - debtor name issues

Having major headaches with a UCC-1 filing for our short form ip security agreement. We're securing intellectual property rights for a tech startup acquisition and the debtor name on our security agreement doesn't exactly match what's showing up in the state business records. The agreement lists "TechFlow Solutions LLC" but the state shows "TechFlow Solutions, LLC" with the comma. Our lender is freaking out because they think this name mismatch could invalidate the entire security interest in the IP portfolio. The collateral description covers patents, trademarks, copyrights, and trade secrets - pretty standard IP security language. But if the debtor name is wrong on the UCC-1, does that mean we have no perfected security interest? This is a $2.8M deal and we can't afford to mess this up. Anyone dealt with punctuation issues like this in IP security agreements? The filing deadline is coming up fast and I need to know if we should refile or if the current version will hold up.

Update: We decided to refile the UCC-1 with the exact debtor name from state records (including the comma). Used one of those document checking tools mentioned earlier to verify everything matched perfectly before submitting. The new filing was accepted within hours and our lender is satisfied. Thanks for all the advice - better safe than sorry with IP security!

0 coins

Great outcome. This is exactly why we always recommend being conservative with debtor names on high-value IP deals.

0 coins

Huge relief! The closing went smoothly and everyone was confident in the perfected security interest. Definitely learned my lesson about debtor name accuracy.

0 coins

This thread should be required reading for anyone doing IP security work. The number of deals I've seen with perfection issues due to sloppy UCC filings is staggering.

0 coins

Absolutely agree. IP security agreements require extra attention to detail because the collateral is so valuable but intangible.

0 coins

I'm bookmarking this discussion for future reference. Great real-world example of how to handle debtor name issues correctly.

0 coins

Sofia Morales

UCC search Kansas filing showing wrong debtor address - can this void my security interest?

Running into a weird situation with a UCC search Kansas result that's got me concerned about my lien position. Filed a UCC-1 last month for equipment financing deal and when I pulled the search results to verify everything went through, the debtor address is showing completely different than what we submitted. We filed with the correct business address but the Kansas UCC search is displaying an old registered agent address from 2019. The debtor name matches perfectly and the filing number is correct, but this address discrepancy has me worried. Could this create problems if we need to enforce? The collateral description looks fine and shows our equipment serial numbers correctly. Has anyone dealt with Kansas SOS displaying wrong addresses on UCC searches even when the original filing had the right info? Not sure if this is just a display issue or if it could actually impact the validity of our security interest.

For what it's worth, I've never seen a UCC challenged successfully based on address discrepancies in Kansas. The courts understand that the Secretary of State's system has these display issues. Your security interest is almost certainly fine.

0 coins

That's exactly what I needed to hear. Thanks for the real-world perspective on how courts actually handle these situations.

0 coins

Agreed. The case law is pretty clear that minor address variations don't invalidate filings when the debtor name is sufficient for identification purposes.

0 coins

Update on this - just got off the phone with Kansas SOS and they confirmed this is a known display issue. They said the actual filed documents have the correct information and the search results sometimes pull addresses from different database fields. They're supposedly working on a fix but no timeline. At least I can stop worrying about it now!

0 coins

Lol 'working on a fix with no timeline' - government speak for 'maybe we'll get to it in 2030

0 coins

Thanks for making that call and reporting back. Really appreciate everyone's help on this thread - saved me a lot of stress and probably an unnecessary amendment filing!

0 coins

MidnightRider

UCC-3 Amendment rejected - written security agreement clause causing debtor name mismatch

Has anyone dealt with a UCC-3 amendment getting rejected because the debtor name on your written security agreement doesn't exactly match what's on file? We're trying to amend our collateral description for a $2.8M equipment loan but the SOS keeps bouncing it back. Our original UCC-1 from 2019 has the debtor listed as "ABC Manufacturing LLC" but our written security agreement shows "ABC Manufacturing, LLC" (with the comma). The loan documents all reference the written security agreement version with the comma, but now we can't get our amendment through. This is holding up a major refinancing and I'm not sure if we need to file a whole new UCC-1 or if there's a way to fix this through the amendment process. The lender is getting antsy about the lien perfection gap.

Just want to echo what others said about checking the official entity records first. I made the mistake once of using the name from a contract instead of the Secretary of State database and it caused a huge mess. Now I always verify against official records before drafting any written security agreement.

0 coins

Good reminder. The contracts team doesn't always use the exact legal entity name.

0 coins

Exactly - they use whatever sounds better or fits on the signature line, but that's not always the legal name for UCC purposes.

0 coins

Hope this works out for you! Refinancing delays over UCC technicalities are the worst. Keep us posted on whether the correction approach works.

0 coins

Will do - this thread has been super helpful. At least I know I'm not the only one dealing with these name matching headaches.

0 coins

definitely not alone - seems like every other deal has some version of this issue

0 coins

Diego Vargas

Alabama Secretary of State UCC Filing System Down Again?

Is anyone else having issues with the Alabama Secretary of State UCC filing portal today? I've been trying to submit a UCC-1 continuation for over 2 hours and keep getting timeout errors. The filing expires next month and I'm starting to panic. The system keeps logging me out right when I get to the payment screen. Has anyone successfully filed today or know if there's scheduled maintenance? I called their office but got voicemail. This is for a $2.8M equipment loan and I absolutely cannot let this lapse.

Success! Finally got my continuation filed. Used Chrome in incognito mode and it went through on first try. Thanks everyone for the suggestions!

0 coins

Glad you got it sorted. Make sure to save or print the confirmation page with the filing number.

0 coins

Great news! For your next filing, seriously consider using Certana.ai to pre-check everything. It's saved me so much stress by catching errors before submission.

0 coins

The Alabama portal updates their system every Tuesday night around 11pm-2am. Might explain the issues if they pushed an update that broke something.

0 coins

That's useful info. Do you know if they announce maintenance windows anywhere?

0 coins

Not really. I only know because I've been burned by it before when filing late at night.

0 coins

Prev1...298299300301302...684Next