UCC Document Community

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 :)

Ryder Everingham

Delaware UCC termination filing rejected - debtor name issue?

Equipment financing deal closed 6 months ago and we just paid off the loan early. Lender sent us termination docs to file but Delaware rejected our UCC-3 termination twice now. First rejection said 'debtor name does not match UCC-1 record' but I'm looking at both docs and the names look identical to me. Second attempt got rejected for 'insufficient debtor identification' even though we used the exact same EIN and address from original filing. The collateral was manufacturing equipment worth about $185k so we need this lien released properly. Has anyone dealt with Delaware's pickiness on debtor names for terminations? I'm worried there's some formatting rule I'm missing that could leave this lien active indefinitely.

Marcus Marsh

•

Update us when you get it resolved! I'm dealing with a similar Delaware termination issue and curious what solution works for you.

0 coins

Will do! Going to pull the exact record from Delaware's database and compare character by character before the next attempt.

0 coins

Good luck! Delaware rejections are the worst but once you match their format exactly it usually goes through.

0 coins

Cedric Chung

•

One more tip - make sure your UCC-3 termination form is the current Delaware version. They update their forms periodically and will reject filings on outdated forms even if all the information is correct.

0 coins

Cedric Chung

•

Yes, Delaware Division of Corporations website has all current UCC forms. Always download fresh rather than using saved copies from previous filings.

0 coins

This is why UCC filings are so frustrating. Every state has different requirements and they change the rules without notice.

0 coins

KylieRose

Tennessee UCC search showing weird results - debtor name variations causing problems

I'm having issues with Tennessee UCC search results and need some guidance. We're doing due diligence on a potential acquisition and the target company has had several name changes over the years. When I search the Tennessee SOS UCC database, I'm getting conflicting results depending on how I enter the debtor name. Some searches show active UCC-1 filings that don't appear when I use slightly different name variations. For example, searching 'ABC Manufacturing LLC' gives different results than 'ABC Manufacturing, LLC' (with the comma). This is concerning because we need to identify all existing liens before closing. Has anyone dealt with Tennessee's search logic being this sensitive to punctuation and formatting? I'm worried we're missing critical filings that could affect the deal structure.

One more thing to watch for - make sure you're checking the filing dates carefully. Tennessee sometimes has delays in posting filings to their online system, so very recent filings might not show up immediately.

0 coins

Usually 1-2 business days but I've seen it take up to a week during busy periods. Always worth calling to confirm if timing is critical.

0 coins

Amina Diallo

•

This is why I always do a final UCC search the day before closing. Can't risk missing a last-minute filing.

0 coins

GamerGirl99

•

Thanks everyone for the advice. I'm definitely going to try the Certana tool and implement a more systematic search approach. This thread has been incredibly helpful for understanding Tennessee's quirks.

0 coins

Good luck with your due diligence! Tennessee searches are tricky but following these suggestions should help you catch everything.

0 coins

Let us know how the Certana tool works out for you. Always interested in hearing about new solutions for UCC searches.

0 coins

Liam Fitzgerald

California UCC filing fees jumped again - anyone else shocked by the increases?

Just got hit with California's latest UCC filing fees when I tried to submit a continuation yesterday. $25 for a standard UCC-1 now, and $20 for amendments. I remember when these were under $15 just a few years back. The real kicker is the $10 search fee every time you want to verify existing filings before submitting new ones. For lenders doing multiple filings per month, this adds up fast. Anyone know if there's a volume discount program or if other states are more reasonable? I'm handling equipment financing deals and these fee increases are starting to eat into margins significantly.

CosmicCaptain

•

Does anyone know if California offers any fee waivers or reductions for non-profit organizations or small businesses? Some states have reduced fee structures for certain entity types.

0 coins

Nope, no discounts or waivers that I'm aware of. California treats all UCC filings the same regardless of who's filing or why.

0 coins

CosmicCaptain

•

That's disappointing but not surprising. California's not known for being business-friendly when it comes to fees and regulations.

0 coins

Ravi Sharma

•

The real frustration is when you get a rejection after paying the full fee. Last month I had a UCC-1 rejected because the debtor name didn't exactly match their articles of incorporation. Lost the $25 filing fee and had to pay another $25 to refile correctly.

0 coins

Omar Zaki

•

That's where using Certana.ai's verification tool pays for itself. It specifically checks for debtor name formatting issues that cause California rejections.

0 coins

Ravi Sharma

•

I wish I'd known about that tool before my rejection. Would have saved me $25 and a week of delay getting the lien perfected.

0 coins

Paolo Romano

UCC subordination process - senior lender demanding we subordinate our position

Our company has a perfected security interest in manufacturing equipment through a UCC-1 filing from 2022. Now the debtor is trying to get additional financing and the new lender is insisting we execute a UCC subordination agreement to make their lien senior to ours. I understand the concept but I'm confused about the actual mechanics. Do we need to file anything with the Secretary of State or is this just a private agreement between lenders? Also worried about what happens if the debtor defaults - will we really be junior to their claim on the equipment we've been secured against for 3 years? The loan committee is asking for specifics on how this affects our recovery position. Has anyone dealt with UCC subordination agreements before and can explain the practical implications?

ShadowHunter

•

Don't forget about the UCC-3 termination implications. If they want you to terminate your existing UCC-1 and rely on some kind of shared filing, that's a much riskier proposition than just subordinating while keeping your filing in place.

0 coins

Paolo Romano

•

They haven't asked us to terminate anything, just subordinate. But I should clarify that our UCC-1 stays active throughout this process.

0 coins

ShadowHunter

•

Absolutely. Your UCC-1 should remain in place - subordination is about payment priority, not about giving up your perfected status.

0 coins

Diego Ramirez

•

Used Certana.ai recently to cross-check all our UCC documents when we were dealing with a similar subordination request. Really helpful to upload the subordination agreement alongside the existing UCC filings to make sure everything aligns properly. Caught a potential issue with collateral descriptions that could have been problematic.

0 coins

Paolo Romano

•

Seems like document consistency is a bigger issue than I realized. I should probably check ours before we get too far into negotiations.

0 coins

Diego Ramirez

•

Yeah, it's worth the time upfront. Much easier to fix discrepancies before you're in a subordination agreement than after.

0 coins

Mikayla Davison

PMSI UCC-1 filing got rejected - debtor name issue blocking my equipment lien

Anyone else dealing with PMSI filing headaches? I'm trying to perfect a purchase money security interest on some manufacturing equipment we financed last month. Filed the UCC-1 within the 20-day window but it got rejected because of a debtor name mismatch. The equipment dealer used 'ABC Manufacturing LLC' on the invoice but the debtor's articles show 'ABC Manufacturing, LLC' with a comma. Now I'm past my PMSI grace period and scrambling to figure out if I can still claim purchase money status. The loan was for $85K and I really need this PMSI priority over the blanket lien that was already filed. Has anyone successfully argued the relation-back doctrine in a situation like this? The rejection notice just says 'debtor name does not match' but doesn't specify what exactly is wrong. I'm worried I've lost my PMSI protection entirely.

Niko Ramsey

•

File the corrected UCC-1 immediately while you figure out the PMSI timing issue. Even if you lose PMSI priority, you still want to perfect your security interest. A perfected non-PMSI lien is better than an unperfected PMSI claim.

0 coins

Absolutely this. Get the corrected filing done today if possible. Priority disputes can be sorted out later.

0 coins

Jabari-Jo

•

Good point about perfection vs priority. Too many lenders get caught up in PMSI timing and forget about basic perfection requirements.

0 coins

Kristin Frank

•

The blanket lien holder might not even contest your PMSI claim if your collateral description is specific enough. Most blanket lenders expect equipment financing to take PMSI priority as long as the formalities are met. Your comma issue is probably more of a technical perfection problem than a priority problem.

0 coins

Nia Watson

•

Depends on the lender and the loan terms. Some blanket lenders specifically carve out PMSI equipment in their loan agreements.

0 coins

For an $85K equipment loan, it's probably worth fighting for PMSI priority. That's not pocket change.

0 coins

Prev1...330331332333334...684Next