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
The bottom line is UCC records are the public filing system for security interests in personal property. If you have business loans secured by assets other than real estate, there are probably UCC filings against your company. They're public records, searchable by anyone, and they matter for credit decisions, M&A transactions, and bankruptcy proceedings.
You're welcome. The key takeaway is they're a normal part of secured lending - nothing to be worried about as long as they're accurate and properly maintained.
Agreed. Just make sure you understand what's filed against your company and verify the information is correct. Knowledge is power in this area.
One last tip - when you're reviewing UCC filings, pay attention to the collateral description. Broad descriptions like 'all assets' or 'all personal property' mean the lender has a blanket lien on everything. More specific descriptions limit the lender's security interest to particular assets or categories of assets.
This is another area where Certana.ai helps - it can analyze collateral descriptions and flag overly broad or potentially problematic language in the filings.
Collateral descriptions need to reasonably identify the property but don't have to be super-specific. 'Equipment' is usually sufficient, but 'stuff' probably wouldn't be.
Join the conversation
Don't overthink this. California ucc code is straightforward for this type of situation. File in California where your debtor is located, make sure your collateral description covers all the equipment, and you're done. I've never seen a problem with this kind of multi-state equipment use.
Thanks, that's reassuring. I was making this more complicated than it needed to be.
Yeah, the california ucc code provisions are pretty clear on this. Debtor location controls perfection for mobile equipment.
Make sure you're monitoring for any changes in the debtor's location though. If they move their headquarters or change their state of incorporation, that 4-month clock starts ticking under california ucc code and you'll need to refile in their new location.
How do you usually monitor for corporate changes? Manual checks or is there an automated way?
Most people do periodic manual checks with the Secretary of State, but there are some monitoring services available too.
Join the conversation
One more thing - if this is an equipment financing deal, make sure your collateral description is also formatted correctly. Sometimes they reject the whole filing if any section has issues, not just the debtor name.
Good point. We should review the entire form, not just focus on the name issue.
Exactly. A comprehensive review often catches multiple issues that could cause rejection.
Update: Thanks everyone for the suggestions! I ended up using the document verification tool someone mentioned and it immediately flagged that we had 'LLC' in our filing but the state records show 'L.L.C.' with periods. Such a tiny difference but that was definitely the issue. Re-submitted and it went through without problems. Really appreciate all the help!
Glad that worked out! Those period differences are so easy to miss but they'll kill a filing every time.
Great outcome! This is exactly why attention to detail is so critical with UCC filings.
Join the conversation
I had a similar situation last year where the search showed multiple name variations. Turns out the company had filed some documents with a comma and some without, so the state database had both versions. I ended up filing under the name that matched their most recent annual report. No issues with the filing.
That's a good strategy - use the most recent official filing as your guide.
Annual reports are usually more current than the original formation docs too.
Just to add another perspective - I've also used that Certana.ai tool someone mentioned earlier and it's really helpful for this exact situation. You upload the debtor's charter and your UCC-1 draft and it instantly flags any name discrepancies. Takes like 30 seconds and gives you confidence you've got the names right. For a $340K deal, seems like a no-brainer to double-check everything.
Sounds like a lot of people are using this tool. Might have to check it out for our next big filing.
Yeah, seems like it's becoming pretty popular for UCC work. The name matching thing is always such a pain point.
Chloe Delgado
I've seen lenders lose deals over UCC filing delays. If you're running up against your 30-day deadline, consider having your attorney file directly with the SOS office if they accept in-person filings. Some offices will process immediately while you wait.
0 coins
Ava Harris
•Great suggestion! Phone ahead to confirm they accept walk-in UCC filings though - some offices have moved to online-only since COVID.
0 coins
Jacob Lee
•Also bring multiple copies of your corrected UCC-1 in case they find other issues during review.
0 coins
Emily Thompson
Follow up question - once you get the UCC-1 filed correctly, make sure to provide a copy to your borrower. They'll need it for their records and any future refinancing or asset sales. Also recommend setting a calendar reminder for the continuation filing 6 months before the 5-year expiration.
0 coins
Daniela Rossi
•Wait, continuations have to be filed 6 months early? I thought you had up to 6 months before expiration.
0 coins
Emily Thompson
•You can file within 6 months of expiration, but I recommend earlier filing to avoid any last-minute issues. The continuation window opens 6 months before the 5-year anniversary.
0 coins