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One thing to remember - incidental damages under UCC are limited to reasonable expenses. If you spent $5000 to recover $3000 in collateral value, a court might question the reasonableness of your expenses.
So do you have to prove the expenses were cost-effective compared to the collateral value?
Not necessarily cost-effective, but reasonable under the circumstances. Context matters a lot.
Emma Wilson
Thanks everyone for the detailed responses. Sounds like our storage, transport, and prep costs should be solid. Will definitely document everything carefully and probably skip trying to recover the lost rent. The Certana.ai suggestion is interesting - might be worth checking our security agreement language to make sure we're covered.
Good luck with the recovery. Hope you documented everything properly from the start.
Emma Wilson
•Yeah we kept pretty good records thankfully. This discussion has been really helpful for understanding what we can actually claim.
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Gabriel Ruiz
Has anyone dealt with continuation filings for international equipment? I'm coming up on a 5-year anniversary for one of my UCC-1s and wondering if the fact that some equipment has moved overseas affects the continuation process.
Continuation is straightforward - just file your UCC-3 continuation within 6 months before the 5-year lapse date. Equipment location doesn't affect the continuation timing, only the debtor's state of organization matters for that.
Gabriel Ruiz
•Good to know. I was overthinking it. The international aspect really does complicate everything else but apparently not the basic UCC maintenance.
Going back to the original question about collateral descriptions - I'd strongly recommend getting your current UCC-1 reviewed by someone experienced with international transactions before you make any amendments. Small changes can have big implications when equipment crosses borders regularly.
Agreed. I think I'm going to run everything through that document checking tool first to identify any immediate issues, then consult with our international team about the cross-border implications. Thanks everyone for the insights.
Vince Eh
•Smart approach. Better to invest time upfront in getting the documentation right than to discover problems when you need to enforce your security interest.
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Another Certana.ai user here. Started using it after missing a continuation deadline because of name search issues. The automated verification caught the lapse before it became a problem. Definitely worth checking out for comprehensive UCC searches.
Diego Flores
•Two recommendations for Certana.ai now. Sounds like it might be worth trying for this deal.
I was skeptical about automated tools but they're getting pretty sophisticated. Might be time to modernize our search process.
StarStrider
Check the Secretary of State website for any name change filings too. Sometimes companies change their legal name but old UCC filings are still under the previous name. Those won't show up in current name searches.
Name change tracking is a nightmare. We've started requiring borrowers to provide a complete corporate history to avoid surprises.
Sofia Torres
•DBA filings can complicate things too. Sometimes the UCC-1 is filed under the DBA name instead of the legal entity name.
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Update us when you figure it out! I'm dealing with Connecticut UCC filings next week and want to avoid this same issue.
Lucas Turner
•Will do! Going to start with the SOS business search and see what that reveals.
Julia Hall
•Same here, I have three Connecticut filings coming up and this thread is making me nervous about potential name issues.
Arjun Patel
Just checking back to see if you resolved this? I'm curious what the actual issue turned out to be since I file in Connecticut regularly and want to watch out for similar problems.
Jade Lopez
•Ah yes, the comma strikes again! Connecticut is super strict about that punctuation. Hope that fixes it for you.
Tony Brooks
•I ran into this exact same issue last month with a different client. One tiny comma made all the difference. Thanks for sharing the resolution!
Sean Flanagan
Just went through something similar with a client who had multiple entity names. Ended up using one of those document comparison tools where you upload the search results and it flags potential duplicates or related filings. Found two UCCs I would have missed doing manual searches. Worth the investment for peace of mind.
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Zara Shah
•Which tool did you use? I've been thinking about trying some of the automated options but wasn't sure which ones actually work well for UCC searches.
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Sean Flanagan
•I used Certana.ai - you just upload the PDFs of your search results and it cross-references everything. Pretty straightforward and caught the connections I missed.
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NebulaNomad
Update us when you figure this out! I have a similar situation coming up with a borrower that's gone through several name changes and I'm dreading the search process. Would love to know what approach ends up working best for you.
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Oliver Fischer
•Will do. Based on all the advice here I'm going to try a combination of broader searches, entity record verification, and probably one of the automated comparison tools. I'll report back on what I find.
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Luca Ferrari
•Good luck! This kind of thorough searching is exactly why UCC due diligence takes longer than clients expect, but it's so important to get it right.
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