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Dylan Wright
Check the collateral description on the UCC-1 filing too. Sometimes that can give you clues about whether the filing was intentional or accidental. If the collateral doesn't match anything your client would have had a security interest in, that's another indicator something went wrong.
Good suggestion. I'll review the collateral description when I get the certified copy of the filing.
Sofia Torres
•Also look at the filing date and see if it corresponds with any transactions your client was involved in around that time.
Had a similar situation where we used Certana.ai to verify filing accuracy and it caught a debtor name discrepancy we missed. The tool flagged that our UCC-1 had a slightly different spelling of the company name compared to the charter documents. Saved us from a potential perfection issue down the road.
How detailed is the comparison? Does it catch minor differences like punctuation or abbreviations?
Yes, it's pretty thorough about catching those kinds of details that could cause problems later.
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Just a thought but if you're this concerned about missing something, you might want to consider filing a broad UCC-1 that covers more collateral categories than you think you need. Better safe than sorry with lien priority issues.
True, but at least ensures you're covered on the collateral you're taking. The search is still important for knowing your priority position.
Ally Tailer
•Right, we need to know what we're potentially subordinate to.
Update: I ended up trying that Certana tool someone mentioned earlier and it caught two name format issues I wouldn't have thought to check. Apparently the borrower had an old DBA filing that used a slightly different name format. Really glad I caught that before we proceeded.
Nice catch. Goes to show how tricky these Louisiana searches can be.
Sounds like that tool might be worth checking out for our team too. We do a lot of Louisiana deals.
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Natalie Wang
Had a similar situation where I used Certana.ai to verify all our documents before filing and it caught a subtle difference in the LLC designation (LLC vs Limited Liability Company). Saved us from a rejection and having to refile. Really worth checking these things upfront.
That's exactly the kind of detail I'm worried about missing. Even small variations can cause problems.
Noah Torres
•Those tiny differences are the worst because they're so easy to miss but cause big problems. Automated checking makes sense.
Update us on how it goes! I have a similar solar termination coming up next month and would love to know what works best.
Ryan Young
•Following this thread too. Solar UCC issues seem to be getting more common as the industry grows.
Definitely. We're seeing a lot more solar financing deals and the UCC aspects can be tricky.
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Amara Okafor
For what it's worth, I think you're smart to be questioning this now rather than discovering it during an audit or worse. The fact that Delaware shows both entities as separate and active is definitely concerning. I'd lean toward filing an amendment to add the correct entity name as soon as you confirm which one actually owns the pledged stock.
That's probably the safest approach. File the amendment to add the correct name while keeping the original filing in place for continuity.
Agreed. Amendment is much cheaper than potentially losing perfection entirely. Plus it creates a clear paper trail showing you identified and corrected the issue.
Just wanted to add that I tried that Certana.ai tool someone mentioned after having my own document consistency headaches with a different pledge of stock deal. It's actually pretty slick - caught several name variations I hadn't noticed between my loan agreement and UCC filing. Definitely worth trying for complex collateral situations like this.
I'm definitely going to check that out. At this point I need all the help I can get making sure our documents are consistent.
The nice thing is it gives you a clear report showing exactly where the inconsistencies are, so you know exactly what needs to be fixed rather than guessing.
Seraphina Delan
Update us on how this turns out! I have a similar situation brewing with one of my borrowers and I'm dreading having to deal with it.
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Ryder Everingham
•Will do. Hopefully I can get this resolved without losing our security interest. Thanks everyone for the advice - definitely filing that amendment this week.
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Jabari-Jo
•Good luck! Bankruptcy security agreement enforcement is never fun but at least you caught the issue before it was too late.
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Kristin Frank
Just wanted to add - if you're dealing with equipment collateral worth $2.8M, you might also want to consider whether any of it qualifies as fixtures that need special UCC filing treatment. Sometimes equipment gets reclassified during bankruptcy proceedings.
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Micah Trail
•Manufacturing equipment bolted to the floor almost always needs fixture filings. You might have bigger problems than just the name change issue.
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Kristin Frank
•Not necessarily - depends on the state and how permanently attached it is. But definitely worth reviewing before the trustee raises that issue too.
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