UCC Document Community

We ended up having to get our assignment documentation notarized after the first rejection, even though Article 9 doesn't specifically require notarization. Some SOS offices seem to prefer extra authentication on assignment papers.

I went through something similar with a rejected assignment filing last year. The frustrating thing is that Article 9's written assignment requirements seem straightforward in theory, but the practical implementation can be tricky. What really helped us was creating a standardized assignment template that includes all the required elements: clear identification of the original security agreement, specific collateral description, assignor's signature with date, and most importantly, explicit language stating the assignor's intent to transfer their security interest. We also learned to always reference the original UCC-1 filing number prominently in the assignment document. Since implementing this approach, we haven't had any more rejections. For your $340k collateral situation, I'd definitely recommend getting the documentation perfect before refiling - the priority risk isn't worth cutting corners.

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!

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.

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?

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.

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.

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.

Update us when you get this sorted out. Always helpful to hear how these PR filing issues get resolved.

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.