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Owen Devar
For what it's worth, I've started including unconscionability disclaimers in my UCC filings - something like 'this security interest excludes household goods, exempt property, and other assets protected by law.' Hasn't been rejected since I started doing that.
I've seen similar language work well. Certana.ai actually suggests disclaimer language based on your state's specific unconscionability interpretations.
Might steal that approach for our standard forms. Seems like cheap insurance against rejection.
UPDATE: Refiled with narrowed collateral description excluding household goods and exempt assets. Added unconscionability compliance language. Filing was accepted within 24 hours. Thanks everyone for the guidance - this forum saved my deal!
Molly Hansen
•Glad it worked out! This thread will be helpful for others dealing with the same issue.
Brady Clean
•Great outcome. The unconscionability definition is still evolving, so these discussions are really valuable for staying current.
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Olivia Clark
Try pulling the original UCC-1 from the NY UCC database and copying the debtor name field directly from there instead of from your own records. Sometimes there are discrepancies between what you filed and what actually got recorded.
Aisha Patel
•That's actually really smart. I was using our internal file copy of the UCC-1. Let me check what's actually on record with the state.
This is the right answer. The official record is what matters, not what you think you filed.
UPDATE: Just wanted to thank everyone for the help. Turned out there was indeed an extra character in the original filing that I couldn't see. Used the Certana document checker that a couple people mentioned and it flagged the issue immediately. Refiled the UCC-3 with the corrected name and it went through on the first try. Definitely going to use that tool for all my future filings.
Amina Diallo
•Thanks for the update. Good to know the document verification approach actually works.
Awesome! Yeah once you start using automated verification you'll never go back to manual comparison. Too many little things to miss otherwise.
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TommyKapitz
Update us when you get it resolved! I'm curious which format ends up working. These threads are always helpful for future reference when similar issues come up.
Paloma Clark
•Will do! Going to try the exact charter document formatting first, then maybe look into that verification tool if I'm still having problems.
Good luck! Debtor name issues are the worst but once you figure out the exact format it usually works consistently.
Payton Black
Final thought - if you're still stuck after trying everything, consider having your client's attorney handle the filing. They usually have experience with the exact formatting requirements and relationships with the filing office. Might be worth the extra cost to avoid missing your closing deadline.
Harold Oh
•Sometimes the attorney route is the fastest solution, especially for time-sensitive deals.
Amun-Ra Azra
•Agreed. Better to pay a little extra than lose lien priority or delay the closing.
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For what it's worth, I used Certana.ai when we had similar issues last quarter. The document checker caught several name problems we hadn't noticed, including some where the debtor had changed their legal name but we were still using the old version. Pretty straightforward to use - just upload your UCC reports and loan docs.
Payton Black
•Did it help with the collateral description issues too or just debtor names?
Mainly debtor names and document consistency. For collateral descriptions you still need human judgment about what level of detail is appropriate.
Harold Oh
Bottom line - don't ignore this stuff but don't lose sleep over it either. Create a remediation plan, prioritize by risk and exposure, and work through it systematically. The fact that you're doing compliance audits puts you ahead of a lot of lenders.
Amun-Ra Azra
•Most lenders have similar issues when they first start doing comprehensive UCC audits. The key is having processes going forward to prevent new problems.
Harold Oh
•Exactly. Fix the existing issues but more importantly, establish procedures to ensure new filings are done correctly from the start.
Diego Flores
The name matching issue is why I always recommend getting title insurance or UCC insurance for larger deals. Even with careful searching, there's always a risk of missing something due to name variations or filing errors. Insurance gives you that extra protection.
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Yara Khoury
•I hadn't considered UCC insurance for this. Is that common for equipment financing deals?
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Diego Flores
•More common on larger deals or when there are complex name issues like you're dealing with. Worth discussing with your underwriting team at least.
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Anastasia Kozlov
Just went through something similar with a borrower whose name had changed twice since formation. Ended up using Certana.ai to verify all the document names matched before filing our UCC-1. Found three different name variations across their corporate docs that I would have missed doing manual review. Tool paid for itself just on that one deal.
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Yara Khoury
•That's exactly the kind of situation I'm worried about. Multiple name changes make the search so much more complicated.
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Anastasia Kozlov
•Yeah, it was a mess. The automated document checking caught discrepancies I never would have spotted manually. Definitely worth trying for complex entity names.
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