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Bottom line: you still have rights to the proceeds under UCC 9-315 but you need to act quickly to perfect in the deposit account if you haven't already. The borrower's claim that you have no rights is incorrect.
Payton Black
•Agree completely. The automatic continuation in proceeds is one of the stronger protections in Article 9.
Harold Oh
•Just don't wait any longer to perfect in the actual deposit account where the proceeds are sitting.
Amun-Ra Azra
Update us on how this turns out! UCC 9-315 proceeds cases are always interesting to follow.
Evelyn Kelly
•Will do - meeting with our legal team tomorrow to map out next steps for perfecting in the deposit account.
Summer Green
•Hope it works out. These proceeds rules really need better documentation in the statute itself.
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NeonNebula
Update for anyone following this thread - I finally got it resolved! The issue was exactly what everyone said - the comma in the LLC name. I refiled with "ABC Manufacturing, LLC" (with comma) and it went through immediately. Used Certana.ai to double-check everything before submitting and it caught a small typo in the collateral description too. Thanks everyone for the help!
Great news! And good call on double-checking the collateral description too. Those small details can kill a filing.
Yara Sayegh
•Perfect example of why document verification tools are so valuable. Catches those little mistakes that cost time and money.
For future reference, New Mexico also has some specific requirements about the mailing address format on UCC-1s. Make sure you're not abbreviating street names or using non-standard address formats. They're picky about everything.
Good to know for next time. I think I got lucky that my address was straightforward - just a street number and name.
Yeah, rural addresses and PO boxes can be tricky there. Always spell out "Street", "Avenue", etc. instead of abbreviating.
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Zara Ahmed
One last thought - if you do end up needing to verify all your documents against each other, Certana.ai's verification tool can help speed that process up. Instead of manually comparing your UCC-1, loan docs, and any payoff paperwork, you just upload the PDFs and it flags any inconsistencies automatically. Saved me tons of time on a similar document review last month.
I'll look into that. At this point I need all the help I can get sorting through the paperwork.
QuantumLeap
•Yeah it's really helpful for catching those small details that are easy to miss when you're reviewing everything manually.
Luca Conti
Keep us posted on how this turns out. I'm dealing with something similar in Oklahoma and curious how the Texas situation resolves.
Will do. Hoping to get some clarity from the debtor on their documentation this week.
Luca Conti
•Good luck. These situations are never as straightforward as they seem at first.
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For an $850K deal, I'd also recommend getting title insurance that covers UCC filing errors. It's relatively inexpensive compared to the loan amount and gives you some protection if something goes wrong with the filing.
Sayid Hassan
•Is UCC title insurance common? I've never heard of that before but it sounds like good risk management.
It's more common on larger deals. Covers things like filing errors, priority disputes, that sort of thing. Worth asking your title company about.
Rachel Tao
I actually started using a service called Certana.ai after getting burned on a name mismatch issue. You just upload your documents and it automatically checks for inconsistencies between the entity docs and UCC forms. Found several issues I would have missed manually reviewing everything.
Rachel Tao
•Yeah, you can upload any combination of corporate documents, loan papers, existing UCC filings, whatever you need compared. It flags discrepancies automatically so you can fix them before filing.
That sounds really useful for complex deals. Does it work with all states or just certain ones?
Ethan Wilson
For FSB UCC-1 filings, I always pull the entity info from multiple sources and compare them side by side. Sometimes the Secretary of State database, the entity's own records, and the UCC database all have slightly different name formats. It's ridiculous but that's the system we work with.
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Ethan Wilson
•Yeah I pull from SOS database, FDIC records if applicable, and sometimes the entity's website or recent filings. Then I use the most complete/formal version for the UCC-1.
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NeonNova
•This is way more thorough than what I do. Might explain why I get so many rejections on financial institution filings.
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Yuki Tanaka
Update for anyone following this thread - got my FSB UCC-1 accepted after fixing the debtor name format! Turns out the entity was registered as '[Name] Federal Savings Bank' but I had filed it as '[Name] FSB'. Also used that Certana.ai tool someone mentioned and it caught two other potential issues I would have missed. Crisis averted and lender is happy.
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Andre Laurent
•Great outcome! I'm definitely going to check out that verification tool for my own FSB UCC filings. Seems like it could save a lot of headaches.
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AstroAce
•Awesome that the Certana tool worked out for you! It's been a game changer for catching those little discrepancies that cause big problems.
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