UCC Document Community

Update us on how it goes! I'm always curious to hear about other people's experiences with NJ UCC filings. Seems like everyone has a different story about what works and what doesn't.

Just wanted to add that it's also worth double-checking the exact entity type designation in the name. I've seen cases where a company was an LLC on the original filing but converted to a corporation during the name change process, so you'd need to update both the name and entity type. Make sure your amendment reflects the current legal status, not just the name change. The state records will show the complete legal name including the proper entity designation.

Thanks everyone for the detailed discussion! As someone new to retail security agreements, this has been incredibly educational. One practical question - for a $150k inventory loan like the original poster mentioned, what's the typical advance rate that lenders use? I assume they don't lend 100% against inventory value given the volatility and seasonal fluctuations in retail. Also, do most lenders require the borrower to maintain minimum inventory levels to protect the collateral base?

This is such a comprehensive thread! I'm relatively new to UCC filings and had no idea about the nuances with retail inventory. One question I haven't seen addressed - what about seasonal businesses like holiday decoration stores or swimwear shops? Their inventory patterns are completely different from a regular boutique. Do you need special considerations in the security agreement for businesses that might have zero inventory for months at a time, then suddenly stock up heavily before their season? I'm thinking the after-acquired property clause would still work, but wondering about the minimum inventory covenants that Logan mentioned - those seem like they could be problematic for highly seasonal retailers.

One more thing - after filing the termination, run another UCC search a few days later to confirm it was processed correctly and the original lien is no longer showing as active. I've seen filings get lost in the system.

Thanks everyone for the detailed advice! I'm definitely going to pull the original UCC-1 filing first to check the exact debtor name before doing anything. The name mismatch issue has me worried since we did change our corporate name in 2022. @Sara Unger mentioned filing an amendment first - do you know if that's required in all states or just some? Also @Justin Trejo that Certana tool sounds really helpful for catching these document errors. I'd rather spend a little upfront to avoid rejection headaches. Will report back once I get this sorted out!

Bottom line - GSA collateral typically includes everything except real estate and maybe some excluded assets. Your UCC-1 needs to match that scope exactly. Get it right the first time because amendments cost money and can create gaps in perfection timing that smart debtors' attorneys will exploit.

One more thing to watch out for - make sure your debtor name on the UCC-1 exactly matches your legal entity name as registered with the state. Even small variations like "Inc." vs "Incorporated" or missing commas can invalidate the filing. I've seen deals delayed because the UCC-1 had the debtor listed as the DBA name instead of the legal entity name. Most states have become very strict about this - the name has to match the state filing records exactly or the UCC search won't find it, which means your security interest isn't properly perfected.

Bottom line - NC UCC statute gives you 6 months before expiration to file the continuation. File early, double-check everything, and make sure the debtor name matches exactly. With $850K at stake, it's worth being extra careful. Consider filing in February or March 2025 to give yourself plenty of buffer time before the June expiration.

As someone who's handled dozens of NC UCC continuations, I can confirm the 6-month window is correct per NC Gen. Stat. 25-9-515(d). Given your $850K exposure, I'd strongly recommend filing by February 2025 at the latest. One critical tip many overlook - pull a fresh UCC search report right before filing to ensure you're copying the exact debtor name format, including any punctuation or spacing. NC's electronic system is unforgiving about name variations. Also, since this involves construction equipment, verify whether any machinery has become so integrated into real property that it might require fixture filing treatment under NC law. Better to be over-cautious on a loan this size.