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I'm in a similar boat with an MCA UCC lien that's blocking my SBA loan application. The bank won't proceed until the lien is resolved. Did you find any specific resources for dealing with MCA companies who won't cooperate on correcting or terminating defective filings?
I used Certana.ai's verification tool to document all the problems with my MCA company's UCC filing. Having that official report made the bank more comfortable proceeding with my loan application.
That's a great idea. I need something official to show the bank why the MCA lien shouldn't be a concern for their lending decision.
The name variation issue you mentioned is actually a huge red flag that could work in your favor. UCC-1 filings require the exact legal name of the debtor as registered with the state - even minor spelling differences can render the entire filing invalid. I'd strongly recommend pulling your official business registration documents and comparing them character-by-character with what the MCA company filed. If there's any discrepancy, you may have grounds to challenge the entire lien. Also, that "all assets" collateral description is problematic - UCC law requires reasonable identification of collateral, and courts have ruled that overly broad language like this can make filings unenforceable. Many MCA companies count on business owners not knowing these technical requirements. Don't let their daily payment demands pressure you into accepting a potentially invalid lien claim.
This is incredibly helpful advice! I'm new to dealing with UCC filings and had no idea that even small name variations could invalidate the entire filing. The daily payment pressure has been making me feel like I have no options, but it sounds like there might be real technical defenses available. Do you know if there's a specific timeframe for challenging these types of filing errors, or can you dispute them at any point while the UCC-1 is active?
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Update us when you figure out what caused the UCC 108! These mystery rejection codes help everyone learn what to avoid.
Will do! Planning to try the document verification approach first, then call the SOS office if that doesn't reveal the issue.
Smart approach. Better to catch the problem before refiling than risk another rejection.
I've dealt with UCC 108 rejections several times and they're always maddening because the error message is so vague. In my experience, it's usually one of three things: (1) exact character mismatch in debtor or secured party names, (2) the original filing has already been terminated or lapsed without your knowledge, or (3) the file number has a typo. I'd recommend running a fresh UCC search first to verify the original is still active and see exactly how all the names appear in their system. Sometimes what looks identical to us has subtle differences the system catches. Also check if there were any amendments or assignments filed that might have changed how the parties should be listed. Good luck with getting this resolved before your lapse date!
This is really helpful - thank you for breaking down the three main causes! I didn't even think about checking for amendments or assignments that might have been filed. That could definitely explain why my "exact" match isn't working. I'll run that UCC search first thing tomorrow and see what shows up in their system versus what I have on file.
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Hope this thread helped clarify UCC form meaning for you! The system makes more sense once you understand each form's purpose. Your uncle's bank should handle everything smoothly for a standard equipment loan. Just make sure you get copies of all the filed documents for your records.
This has been incredibly helpful! I feel much more confident about understanding what the bank is doing now. Really appreciate everyone taking the time to explain.
Glad we could help! UCC filings seem scary at first but they're pretty routine once you understand the basics.
As someone new to UCC filings, this thread has been incredibly educational! I'm curious about timing though - how long does it typically take for a UCC-1 to get processed and show up in the public records? We're working on a similar equipment financing deal and want to make sure we allow enough time in our closing schedule.
Great question! UCC-1 processing times vary by state but most are pretty quick these days. In my experience, electronic filings usually show up in the system within 1-2 business days, sometimes even same day. Paper filings can take longer - maybe 3-5 days. I'd recommend building in at least a week buffer for your closing schedule just to be safe, especially if you need certified copies for the loan documentation.
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Update us when you get this sorted out. Always helpful to hear how these PR filing issues get resolved.
Will do. Planning to get the corporate documents this week and run everything through that document checker tool. Fingers crossed.
Good luck! PR filings can be tricky but once you get the hang of their system it's not too bad.
As someone who's been handling UCC filings across multiple jurisdictions for over a decade, I can't stress enough how important it is to get the debtor name exactly right in Puerto Rico. The Estado Libre Asociado system is particularly unforgiving when it comes to name variations. I'd recommend ordering a certified copy of the corporate charter directly from the PR Department of State - don't rely on what you think the name should be based on loan documents or other paperwork. Also, given that you mentioned this is equipment financing with a continuation coming up, make sure you're tracking the filing date carefully. PR's electronic system has improved but I've seen processing delays that could put you dangerously close to your deadline. Better to file early and be safe than sorry with that much collateral at stake.
This is excellent advice, especially about ordering the certified copy directly from PR Department of State. I'm new to cross-jurisdiction filings and didn't realize how strict they could be about exact name matching. The point about filing early due to processing delays is really helpful too - I was planning to wait until closer to the deadline but sounds like that could be risky. Thanks for sharing your experience!
Nia Davis
Update: I ended up doing searches under 5 different name variations and found two existing UCC-1 filings I would have missed. One was under the company's old name before they changed it, and another was under an abbreviation. Both are still active. Thanks for all the advice - definitely saved me from a major headache!
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Aisha Rahman
•Did you end up walking away from the deal or were you able to get the existing liens released?
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Nia Davis
•We're working with the seller to get proper releases before closing. Much better to deal with this upfront than discover it later.
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Elijah O'Reilly
This thread is incredibly valuable for anyone doing UCC searches! I'm relatively new to this and just wanted to add that NY also allows for wildcard searches using the asterisk (*) symbol, which can help catch variations you might not think of. For example, searching "ABC Company*" would find "ABC Company Inc", "ABC Company LLC", "ABC Company Incorporated", etc. Just be prepared for a lot of results to sort through, but it's another tool in the toolkit for comprehensive searches.
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