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 Lee

UCC accounts definition causing filing rejection - need help with collateral description

Having major issues with my UCC-1 filing getting rejected because of how I'm defining accounts in the collateral description. The SOS keeps bouncing it back saying the accounts definition is too vague. I'm trying to perfect a security interest in customer accounts receivable for a factoring arrangement, but apparently my standard boilerplate language isn't cutting it anymore. The debtor has about $2.8M in outstanding receivables from 200+ customers and I need to make sure the collateral description covers everything properly. Has anyone else run into this with accounts definition under the UCC? What specific language are you using that actually gets accepted? This is holding up a major deal and I'm getting desperate here.

UPDATE: Thanks everyone for the advice! I revised my collateral description using the suggestions here and the filing was accepted. Used the more specific language about accounts receivable vs. deposit accounts and that seemed to do the trick. Really appreciate all the help - this forum is a lifesaver!

0 coins

Glad the specific language approach worked for you. It's becoming the new standard unfortunately.

0 coins

This whole thread was super helpful. I'm bookmarking it for when I run into the same issue.

0 coins

For anyone else reading this thread later - the key takeaway is that UCC accounts definition needs to be specific about what types of payment rights you're covering. Generic language like 'all accounts' isn't enough anymore. Be prepared to distinguish between accounts receivable, deposit accounts, and other payment intangibles.

0 coins

This should be pinned at the top of the forum. So many people struggle with this exact issue.

0 coins

Seriously, the UCC rules around accounts are way more complex than they seem at first glance.

0 coins

Mia Green

UCC filing fees eating into our loan margins - need cost breakdown

Running numbers on a equipment financing portfolio and the UCC filing fees are adding up faster than I expected. We're looking at about 40 UCC-1 filings this quarter plus the inevitable continuations down the road. Anyone have recent experience with what the actual costs look like when you factor in all the fees? I know the base filing fee but there's always additional charges that pop up - amendment fees when we catch debtor name issues, continuation fees in 5 years, termination processing. My compliance team is asking for a realistic budget projection and I don't want to lowball it. The loan committee is already questioning our margins on smaller deals when these filing costs get factored in. What should I be budgeting per filing to cover the full lifecycle?

Also consider the opportunity cost of delayed filings. If a UCC-1 gets rejected and you don't catch it immediately, you could lose perfection priority to another creditor who files in the meantime. That's a much bigger cost than just the filing fees.

0 coins

Exactly. The filing fees are small compared to the risk of losing secured status.

0 coins

This is why we always do same-day re-filing if we get a rejection. Can't afford to wait.

0 coins

Don't forget to budget for expedited processing if you need it. Some deals require same-day filing and the expedite fees can double your cost.

0 coins

Good point. We do have some time-sensitive closings where expedited filing is necessary.

0 coins

Expedite fees are painful but sometimes unavoidable. Just make sure you're billing those back to the borrower when possible.

0 coins

Zara Ahmed

UCC lien search Georgia - debtor name showing zero results but filing definitely exists

Having a nightmare with a UCC lien search Georgia situation. Filed a UCC-1 back in March 2024 for a $180K equipment loan and got confirmation it was accepted. Now I'm trying to run a search on the debtor and getting absolutely nothing. Called the Georgia SOS office and they said the filing is there but maybe the debtor name format is causing search issues. The original debtor name on our loan docs was 'Atlanta Metal Works LLC' but I'm wondering if we filed it as 'Atlanta Metalworks, LLC' or some other variation. This is keeping me up at night because if the lien isn't searchable, it's basically worthless for perfection purposes. Anyone dealt with Georgia's search quirks before? I need to figure out exactly how this debtor name appears in their system.

Quick update - just tried the Certana.ai tool someone mentioned earlier. Uploaded our loan agreement and the UCC-1 confirmation, and it immediately showed the name discrepancy. Our loan docs show 'Atlanta Metal Works LLC' but the filing shows 'Atlanta Metal Works, LLC' with a comma. That tiny punctuation difference is probably why the search isn't working.

0 coins

Amazing how such a small thing can cause such big headaches. Glad you found the issue.

0 coins

Certana.ai saved the day! This is why document verification tools are so valuable for UCC work.

0 coins

SOLVED! Searched with 'Atlanta Metal Works, LLC' (with the comma) and found our UCC-1 immediately. The filing is perfectly valid and searchable - just needed the exact punctuation. Thanks everyone for the help, especially the Certana.ai suggestion that pinpointed the exact issue.

0 coins

Ava Kim

•

Great outcome! This thread should be required reading for anyone doing UCC filings in Georgia.

0 coins

So glad it worked out. These name matching horror stories always stress me out.

0 coins

Andre Dubois

Michigan UCC forms - which version for equipment financing continuation?

Need help with Michigan UCC forms for an equipment loan continuation that's coming due in March. Our original UCC-1 was filed in 2020 for manufacturing equipment worth about $180K, and I'm getting conflicting info about which continuation form to use. The SOS website has like 3 different UCC-3 continuation forms and I don't want to mess this up since the lien lapses if I file the wrong paperwork. Has anyone dealt with Michigan's system recently? The debtor name on our original filing has a middle initial but their current business license shows the full middle name - not sure if that's going to cause problems with the continuation. Really don't want to explain to my boss why our security interest lapsed because I picked the wrong form.

Michigan SOS customer service is actually pretty helpful if you call them directly. They can tell you exactly which form to use and verify the debtor name requirements over the phone.

0 coins

Yeah their phone support is way better than most states. Usually get through pretty quickly too.

0 coins

Make sure to have your original filing number ready when you call. Speeds up the process.

0 coins

Just to close the loop on this - ended up calling Michigan SOS this morning and they confirmed I need the standard UCC-3 continuation form with the exact debtor name from the original UCC-1 (middle initial, not full name). Also tried that Certana.ai document checker and it flagged a small formatting issue I wouldn't have caught. Filed the continuation electronically and got confirmation within 2 hours. Thanks everyone for the help!

0 coins

Great outcome. 2 hours is really fast for Michigan processing.

0 coins

Perfect example of why exact name matching is so critical for UCC continuations.

0 coins

Liam Mendez

UCC filing rejected - security agreement id number mismatch with debtor records

Filed a UCC-1 last week for equipment financing deal and it got rejected by the SOS office. The rejection notice says 'security agreement identification number does not correspond with debtor information on file.' I double-checked everything - debtor name matches exactly, collateral description is proper, but I'm stumped on this security agreement id issue. The loan docs reference agreement #SA-2024-8847 but I'm wondering if there's some formatting requirement I'm missing? This is holding up a $450K equipment loan and the borrower is getting anxious. Has anyone dealt with this specific rejection reason before?

Update us when you figure it out! I'm dealing with a similar rejection and want to know what the actual fix was.

0 coins

Same here - these vague rejection codes are the worst part of UCC filings.

0 coins

I keep a spreadsheet of rejection codes and what actually fixed them. Helps avoid repeating the same mistakes.

0 coins

Pro tip: before refiling anything major, run your documents through a verification check. I learned about Certana.ai from this forum actually and now I upload both the security agreement and UCC-1 before submitting to catch any name or number mismatches. Takes 2 minutes and prevents these headaches.

0 coins

For commercial deals like this one, any tool that prevents filing delays is probably worth the investment.

0 coins

I'm going to look into this too. Manual document comparison is tedious and error-prone.

0 coins

Prev1...676677678679680...684Next