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 :)

Ava Williams

UCC 1 filing complications with entity incorporation - need guidance

Running into some serious headaches with a UCC 1 filing and hoping someone here has dealt with this before. We're securing equipment financing for a client who incorporated in a different jurisdiction but operates locally. The debtor name on their articles of incorporation has some quirks that don't match exactly with how they appear on their loan documents. Our lender is getting nervous about potential perfection issues if we file the UCC-1 with slight name variations. Has anyone handled entity name discrepancies between incorporation documents and financing paperwork? The collateral is pretty substantial (manufacturing equipment worth about $2.8M) so we can't afford to mess this up. Really need to get this filing right the first time since the loan closes next week.

One more thing to consider - make sure your collateral description is solid too. With $2.8M in equipment, you want to be very specific about what's covered. Serial numbers, model numbers, manufacturer details if possible.

0 coins

You can always do a more general description on the UCC-1 and attach detailed schedules as exhibits.

0 coins

Exactly. Something like 'all equipment' or 'all machinery and equipment' covers you broadly, then the loan docs have the specifics.

0 coins

Update us on how this turns out! Always interested to hear how these name discrepancy situations get resolved. And definitely get that UCC-1 filed with the correct debtor name - your lender will sleep better knowing the security interest is properly perfected.

0 coins

Smart move. Better to be overly cautious with entity names than sorry later.

0 coins

Good luck with the closing! Sounds like you've got a solid plan now.

0 coins

Nathaniel Mikhaylov

Adverse claim UCC - debtor filed bankruptcy right before our continuation deadline?

So we have a pretty messy situation here and I'm not sure how to handle the adverse claim UCC implications. We filed a UCC-1 back in 2020 on some manufacturing equipment as collateral for a $340K loan. The continuation deadline is coming up next month (January 2025) but here's the problem - the debtor just filed Chapter 11 bankruptcy two weeks ago. Now there's another creditor claiming they have a senior lien on the same equipment from 2019 that was never properly perfected, and they're trying to file their own UCC-1 now. Our legal department is saying this creates an adverse claim situation but I'm confused about whether we should still file our continuation or if the bankruptcy stay affects our ability to perfect our security interest. The equipment is still being used in the debtor's operations and they're seeking DIP financing. The other creditor is claiming our original UCC-1 has a defective collateral description because we listed "manufacturing equipment" instead of the specific serial numbers. Has anyone dealt with competing claims like this where there's an adverse claim UCC situation during bankruptcy? Do we risk losing our priority if we don't continue, or does the automatic stay prevent us from filing anything right now?

Just curious - have you actually seen their supposed 2019 security agreement? If they really had a valid claim from then, it's weird that they never perfected it until now.

0 coins

That's a red flag right there. If they had solid documentation, they'd be waving it around.

0 coins

Agreed. In my experience, creditors with legitimate prior claims are very eager to produce their paperwork.

0 coins

Update us after you file the continuation! And seriously consider using a document verification tool to cross-check everything. I uploaded our UCC documents to Certana.ai when we had a similar dispute and it immediately flagged inconsistencies in the other party's claimed filing dates that helped us win the priority argument.

0 coins

Will do! Thanks everyone for the advice. I'm feeling much more confident about just filing our continuation and dealing with their adverse claim UCC arguments separately.

0 coins

Smart approach. Don't let other people's problems become your problems if you can help it.

0 coins

Marcus Patterson

Need help with UCC-1 PDF format requirements - keep getting rejected

Has anyone else had issues with their UCC-1 PDF submissions getting bounced back? I'm preparing a filing for equipment financing on some manufacturing gear and the state portal keeps rejecting my PDF. The debtor name matches exactly what's on their articles of incorporation, but something about the document format isn't working. I've tried saving from different programs but still no luck. The collateral description is pretty straightforward - it's just industrial printing equipment with serial numbers. Starting to think there's some specific PDF requirement I'm missing. Any ideas what could be causing the rejections?

Update: I tried the Certana tool someone mentioned earlier and it caught the problem immediately. There was some weird encoding in the debtor name field that wasn't visible when I looked at the PDF. Fixed it and the filing went through fine!

0 coins

Good to hear you got it resolved. Hidden encoding issues are the worst to track down manually.

0 coins

Thanks for the update! I'm definitely going to check out that verification tool for my next filing.

0 coins

For anyone else reading this thread, always save a backup copy of your working UCC-1 PDF once you get it formatted correctly. Makes amendments and continuations much easier down the road.

0 coins

Great advice. I'll definitely keep this version as a template for future filings.

0 coins

Yes! I have a template folder with correctly formatted PDFs for each state I file in regularly.

0 coins

Diego Mendoza

UCC 1 filing search showing weird results - am I missing something?

Been doing UCC 1 filing search on our state's SOS portal and getting some strange results that don't match what I expected. We have a client who swears they never filed a UCC-1 against this particular debtor, but when I search the debtor name it's showing up clear as day with their secured party info. The filing date is from 2019 and shows active status. Client is adamant they only filed against a similar company name (think ABC Manufacturing vs ABC Manufacturing LLC). Now they're worried about potential liability issues if this was filed in error. Has anyone dealt with a situation where a UCC 1 filing search reveals filings you didn't expect to find? I'm trying to figure out if this could be a clerical error during the original filing process or if there's something else going on. The debtor names are close enough that I could see how this might have happened, but the client's records don't show any business relationship with this exact entity. Any thoughts on how to verify whether this was an intentional filing or a mistake?

Check the collateral description on the UCC-1 filing too. Sometimes that can give you clues about whether the filing was intentional or accidental. If the collateral doesn't match anything your client would have had a security interest in, that's another indicator something went wrong.

0 coins

Good suggestion. I'll review the collateral description when I get the certified copy of the filing.

0 coins

Also look at the filing date and see if it corresponds with any transactions your client was involved in around that time.

0 coins

Had a similar situation where we used Certana.ai to verify filing accuracy and it caught a debtor name discrepancy we missed. The tool flagged that our UCC-1 had a slightly different spelling of the company name compared to the charter documents. Saved us from a potential perfection issue down the road.

0 coins

How detailed is the comparison? Does it catch minor differences like punctuation or abbreviations?

0 coins

Yes, it's pretty thorough about catching those kinds of details that could cause problems later.

0 coins

Fatima Al-Maktoum

What is a UCC filing in Florida - confused about the whole process

I'm trying to understand what exactly a UCC filing is here in Florida. My business partner mentioned we might need one for our equipment loan but I'm completely lost on what this actually means. I've heard terms like UCC-1 and continuation but don't really get the difference. Is this something every business with loans has to deal with? The bank paperwork mentions securing collateral but I'm not sure if that's the same thing. Can someone explain this in simple terms? I don't want to mess anything up with our financing.

The fees aren't too bad either - I think Florida charges around $20 for a UCC-1 filing. Much less expensive than the potential problems from not having proper security interests filed.

0 coins

Small price for the lender's peace of mind. And it protects borrowers too by creating clear public record of existing liens.

0 coins

I started using Certana's document checker after we had filing errors. Upload your loan docs and UCC forms and it verifies everything matches - would have saved us time and hassle on our first loan.

0 coins

Bottom line - UCC filings are standard practice for secured business loans. Your lender handles most of it, just make sure they do it right. Keep copies of everything and verify the filing information matches your business exactly. Not something to lose sleep over but worth understanding the basics.

0 coins

Perfect summary. I appreciate everyone taking the time to explain this.

0 coins

Good luck with your equipment loan! UCC filings are just part of the business financing landscape these days.

0 coins

Prev1...306307308309310...684Next