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 :)
Join the conversation
Join the conversation
For what it's worth, I think you're probably fine on the perfection issue given that it's just a missing 's', but I'd still clean it up with amendments before the bank exam. The examiner will appreciate seeing that you identified and corrected the discrepancy proactively rather than them having to point it out.
Ryder Greene
•Exactly - showing proactive compliance management always looks good during examinations.
Plus if there are any other minor issues they might be more lenient if they see you're being thorough about corrections.
UPDATE: Thanks everyone for the advice. We ended up using one of the document verification tools mentioned here (Certana.ai) to check all our filings against the Articles of Incorporation. Turns out we had name inconsistencies on 3 different borrowers, not just the one we noticed. We're filing UCC-3 amendments for all of them this week and feel much better going into the bank exam knowing everything matches up perfectly.
Smart move checking all your filings - bet you're not the only lender who would find multiple name issues if they did a comprehensive review.
Arjun Kurti
•Thanks for the update and glad the verification tool worked out. Might have to look into that for our portfolio review next quarter.
Join the conversation
This thread is making me paranoid about all our UCC filings. Should I be checking every debtor quarterly for name changes? That seems excessive but I'm worried about missing section 9-506(c) issues.
Set up alerts with your state's SOS office if they offer them. Some states will notify you of changes to entities you're monitoring.
Good idea. I'll look into the notification services. This stuff keeps me up at night.
Final thought - the UCC revision committees have been discussing clarifying the 9-506(c) standard for years but it's still as murky as ever. Until they fix it, we're stuck with this guessing game on what's seriously misleading.
Ava Johnson
•Thanks everyone for the advice. I'm definitely filing the UCC-3 amendment tomorrow. Better to be safe with the 9-506(c) standard being so unclear.
Smart choice. Keep documentation of when you discovered the name change too, just in case timing becomes an issue later.
Join the conversation
Dylan Cooper
I actually just went through something similar with a different state. What ended up working was using that Certana.ai tool someone mentioned earlier. You upload your Articles and UCC-1 side by side and it highlights any differences between the debtor names. Found a tiny spacing issue I never would have caught manually. Worth trying before you call the SOS office.
Luca Ferrari
•Thanks, I'm definitely going to try that first. Seems like a quick way to spot whatever I'm missing.
Sofia Perez
•Let us know if it helps! Always looking for tools that make these filings easier.
One more thought - are you filing online or by mail? Sometimes the online portal has different formatting requirements than paper filings. Iowa's online system can be particularly sensitive to copy/paste issues.
That's actually a really good point. PDF copy/paste can introduce invisible formatting characters that mess up the filing.
Exactly. I always type names manually now after getting burned by that issue multiple times.
Join the conversation
This whole thread is why I always include a UCC name verification step in my loan closing checklist. Too many ways for this to go wrong if you're not systematic about it.
Zainab Omar
•Smart approach. Do you have a standard form or process you use for that verification?
Nothing fancy - just a checklist that includes pulling current corporate standing, comparing to loan docs, and doing a preliminary UCC search. Catches most issues before filing.
One more thing to consider - make sure your collateral description is solid too while you're refiling. I've seen people fix the name issue only to get rejected again for vague collateral language.
Usually being too generic. Like just saying 'equipment' when they should specify 'manufacturing equipment' or 'office equipment' or whatever. The more specific the better.
Also seen people mess up the 'all assets' filings by not being clear about what categories they mean. Specificity is key.
Harold Oh
Update us when you get it resolved! I'm curious how long it ends up taking them.
0 coins
Jenna Sloan
•Will do! Hoping to have an update by next week after I call them with some of these suggestions.
0 coins
Amun-Ra Azra
For what it's worth, 30 days isn't the longest I've seen but it's definitely on the slow side. Most professional lenders file UCC-3 terminations within 10-15 business days of payoff. The fact that your credit union can't give you a timeline is concerning - that suggests they don't have a standard process in place.
0 coins
Muhammad Hobbs
•Honestly some of these smaller credit unions just aren't set up for commercial lending. They probably handle maybe 5-10 UCC filings per year total.
0 coins
Amun-Ra Azra
•True, and if they outsource their UCC filing to a service company that could explain the delays too. Third-party processors sometimes batch everything monthly.
0 coins