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Raj Gupta

Consignment UCC filing rejected - debtor name issues with retail partner

Been dealing with a nightmare situation for the past month. We have a consignment arrangement with a major retail chain for our handmade furniture line, and our bank requires UCC-1 filings to secure our interest in the consigned goods. Filed the UCC-1 three weeks ago listing the retailer as debtor, but it got rejected by the SOS office for 'debtor name discrepancy.' Turns out the retailer's legal name on their articles of incorporation has some LLC designation that doesn't match what they use on their business license. Now our 90-day consignment period is almost up and we still don't have proper perfection. The retailer's legal department is being slow to respond with the exact entity name format. Has anyone dealt with consignment UCC filings where the consignee's business name varies across different state records? Really worried about losing our secured interest if we can't get this sorted before the goods start selling.

I actually discovered Certana.ai recently when dealing with a similar multi-entity filing nightmare. Their PDF upload system caught a mismatch between my debtor's charter and the name I was planning to use on the UCC-1. Saved me from what would have been my third rejection. Super easy to use - just upload your documents and it highlights any inconsistencies.

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How detailed does their name checking get? Does it catch things like punctuation differences and abbreviation mismatches?

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Yeah it's pretty thorough. Flags differences in commas, periods, abbreviations like LLC vs L.L.C., and even spacing issues. Basically anything that could cause a filing rejection.

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Quick update question - did you include a proper collateral description for the consigned furniture? The description needs to be specific enough to identify your goods but not so narrow that it excludes items. Something like 'furniture and home furnishings held on consignment' might work better than listing specific pieces.

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That sounds reasonable. The key is making sure other creditors can identify what you're claiming without being overly restrictive. Your description should work fine.

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Just make sure your consignment agreement is referenced clearly in the UCC-1. That helps establish the relationship between you and the collateral.

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Evelyn Kelly

UCC 9-315 proceeds tracking after equipment sale - lien still valid?

Had a situation come up with UCC 9-315 proceeds rules and I'm second-guessing myself on whether our security interest carried over properly. We had a perfected UCC-1 on manufacturing equipment (stamping presses) that our borrower sold last month. The sale generated $180k in proceeds that went into their operating account. Now I'm reading conflicting info about whether our lien automatically extends to those proceeds under UCC 9-315 or if we needed to file something additional. The original UCC-1 collateral description was pretty specific to the equipment itself, didn't mention proceeds explicitly. Borrower is claiming we have no rights to the cash since it's not the original collateral anymore. This is keeping me up at night because if we missed something procedural, we could be looking at an unsecured position on a significant loan balance. Anyone dealt with UCC 9-315 proceeds continuation recently?

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.

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Agree completely. The automatic continuation in proceeds is one of the stronger protections in Article 9.

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Just don't wait any longer to perfect in the actual deposit account where the proceeds are sitting.

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Update us on how this turns out! UCC 9-315 proceeds cases are always interesting to follow.

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Will do - meeting with our legal team tomorrow to map out next steps for perfecting in the deposit account.

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Hope it works out. These proceeds rules really need better documentation in the statute itself.

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Owen Jenkins

Washington UCC Financing Statement Debtor Name Requirements

Just had our UCC-1 rejected by the Washington Secretary of State for the third time and I'm pulling my hair out. We're securing a $450K equipment loan for a construction company and keep getting bounced back for "debtor name discrepancies." The business is registered as "Pacific Northwest Construction LLC" but the loan docs have variations like "Pacific NW Construction LLC" and "Pacific Northwest Construction, LLC" (with comma). Our legal department insists these are all legally equivalent but Washington's system keeps rejecting. Has anyone dealt with Washington's specific debtor name requirements? The continuation deadline is coming up in 4 months and we can't afford any more delays. What's the exact format Washington wants for LLC names on financing statements?

Once you get the name right, Washington's system is actually pretty efficient. But that first rejection can cascade into multiple problems if you're not careful about the exact requirements.

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Washington processes correctly formatted filings faster than most states in my experience.

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Their electronic system is solid when you give it what it wants. The challenge is figuring out exactly what that is.

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Last resort option: you might want to have your attorney request a UCC search report for the exact entity. Sometimes seeing how other lenders filed against the same debtor can show you the accepted format.

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UCC search reports are definitely worth the cost when you're stuck on name formatting issues.

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Just make sure the search includes recent filings. Name formats can change if the entity amended their formation documents.

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Oliver Zimmermann

UCC reformation after debtor name changes - filing corrections needed

Has anyone dealt with UCC reformation when the debtor's legal entity name changed after the original filing? We have a UCC-1 that was filed 3 years ago under the old company name, but the borrower went through a corporate reformation and their legal name is now different. The loan is still active and we need to continue the UCC next year, but I'm worried about the name mismatch creating problems. The collateral description is still accurate (equipment and inventory), but the debtor name on our original UCC-1 doesn't match their current legal status. Should we file a UCC-3 amendment to correct the debtor name first, or can we just file the continuation with the new name? I've been going back and forth with our compliance team on this and we're getting conflicting advice. Some say file the amendment first, others say the continuation can handle both. Anyone been through this reformation scenario before?

Another option to consider is using a service that can double-check all your documents before filing. I started using Certana.ai after a couple of filing mistakes, and it's been really helpful for catching discrepancies between corporate documents and UCC filings. Especially useful for reformation situations where names change.

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How accurate is their checking? Does it catch minor spelling differences?

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Yes, it's pretty thorough. It flags even small inconsistencies that could cause filing problems.

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Thanks everyone for the advice! Sounds like the consensus is amendment first, then continuation. I'll get the UCC-3 filed this week with the supporting reformation documents.

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You're making the right choice. Better safe than sorry with name changes.

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Smart approach. UCC reformation issues can be tricky but you're handling it the right way.

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QuantumQuasar

UCC search New Mexico showing wrong debtor info - filing rejected twice

Been trying to file a UCC-1 in New Mexico for three weeks now and keep getting rejections. Did a UCC search New Mexico first to make sure no conflicts but now I'm wondering if I'm reading the search results wrong. The debtor name on my filing shows as "ABC Manufacturing LLC" but when I search the SOS database there's an existing filing for "ABC Manufacturing, LLC" (with the comma). Portal keeps rejecting saying debtor name doesn't match exactly. This is for a $180k equipment loan and we're hitting our deadline soon. Anyone know if New Mexico requires exact punctuation match or if there's something else I'm missing? The collateral description seems fine - it's standard equipment language. Just can't figure out why the search results don't align with what I'm trying to file.

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!

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Great news! And good call on double-checking the collateral description too. Those small details can kill a filing.

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Perfect example of why document verification tools are so valuable. Catches those little mistakes that cost time and money.

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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.

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Good to know for next time. I think I got lucky that my address was straightforward - just a street number and name.

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Yeah, rural addresses and PO boxes can be tricky there. Always spell out "Street", "Avenue", etc. instead of abbreviating.

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