UCC Document Community

Update on our UCC 1 - 202 situation: I filed the UCC-3 amendment to correct the debtor name yesterday and it was accepted this morning. The key was getting the exact legal name from our current Articles of Organization. Also updated the collateral description to be more specific per the new lender's requirements. The whole process took less than 24 hours online. Thanks everyone for the advice - crisis averted!

As someone who's been through multiple UCC 1 - 202 amendments, I can't stress enough how important it is to get ahead of these issues. The name discrepancy problem you're facing is super common - we see it all the time when businesses change entity types or update their legal names. My advice would be to file the UCC-3 amendment for the debtor name correction immediately, don't wait. Ohio's online filing system is pretty efficient, so you should have confirmation within 24-48 hours. For the collateral description issue, you can either include that in the same amendment or file a separate one later if your new lender needs time to finalize their requirements. The most critical thing is maintaining continuous perfection - any gap in coverage could be disastrous. Also, make sure you have copies of all your current corporate documents before filing so the debtor name matches exactly. Good luck with your refinance!

This thread is why I love this forum. Real solutions for real problems. Bookmarking this for when I pay off my SBA loan next year.

Pro tip from someone who's been through this multiple times - when you call the bank, ask to speak directly with their UCC filing department or commercial loan operations team. Regular customer service reps often don't understand the urgency or process. Also, mention that you need the termination for an active financing application - banks typically prioritize these requests since they don't want to be seen as interfering with legitimate business transactions. Document the name of whoever you speak with and get a specific timeline commitment. If they miss that deadline, escalate immediately to a supervisor.

Update: I tried the Certana.ai tool that was mentioned earlier and it caught 2 name inconsistencies between the company's charter and the UCC-1 copies they provided. Going to do some additional searches based on what it flagged. Thanks for the recommendation!

This is a common Connecticut headache! I'd recommend creating a systematic search checklist: 1) Search the exact legal name from articles of incorporation, 2) Try every reasonable abbreviation (Mfg, Mfg., Manufacturing, etc.), 3) Search with and without entity designations (LLC, Inc, etc.), 4) Try partial name searches starting with just the first word, and 5) Check for any DBA names or trade names. Also, when you find discrepancies in filing numbers between what the company provided and what shows up in searches, that's a red flag - make sure to get explanations for every variance before closing. The fact that you're seeing 2-4 liens depending on search terms suggests there might be additional filings under name variations you haven't tried yet.

Quick question - does anyone know if consignment arrangements need different language in the UCC-1 financing statement? Or is it just like any other secured transaction filing?

Just wanted to add from a practical standpoint - when you're dealing with consignment UCC filings, timing is everything. I've seen situations where consignors waited months to file and by then the retailer was already in financial trouble. The 20-day window mentioned earlier is crucial for consumer goods, but even for other types of inventory, filing immediately after delivery gives you the best protection. Also, don't forget to check if your state has any specific consignment notice requirements beyond the UCC filing - some states require additional steps to fully protect your interest.

Bottom line is your UCC-1 filing is still protecting you. The default gives you options under your security agreement, but it doesn't affect your perfected security interest or lien priority. Focus on what enforcement rights you want to exercise, not on whether you need to amend any UCC filings.

Just to reinforce what others have said - your UCC-1 filing remains valid and maintains your priority position regardless of the borrower's default status. I've handled similar situations where broad default language gets triggered, and the key is to focus on your remedies under the security agreement rather than worrying about your UCC filings. Since you mentioned the borrower is still operating and the equipment is in their possession, you have time to evaluate your options. Consider whether you want to work with them on a modification, demand immediate cure of the default, or exercise other rights under your agreement. The UCC-1 is doing its job by protecting your secured position while you decide on your enforcement strategy.