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UCC-1s rejected twice - debtor name variations causing headaches
We've had two UCC-1s rejected in the past month and I'm starting to think there's something systematic we're missing. Both were for commercial equipment loans, different borrowers, but both came back with debtor name issues. The first one was for "ABC Manufacturing LLC" and we filed it exactly as it appears on their articles of incorporation, but the SOS kicked it back saying the legal name didn't match their records. When we checked the Secretary of State database, they had "ABC Manufacturing, LLC" with a comma. The second rejection was even more frustrating - we filed for "Johnson & Associates Inc" and they said it should be "Johnson and Associates Inc" spelled out. Our loan documents all use the ampersand version. Has anyone else been dealing with these picky name matching requirements lately? I'm wondering if there's been a policy change or if we're just having bad luck with the review process.
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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.
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Update us when you get it resolved! I'm dealing with a similar Delaware termination issue and curious what solution works for you.
Will do! Going to pull the exact record from Delaware's database and compare character by character before the next attempt.
Good luck! Delaware rejections are the worst but once you match their format exactly it usually goes through.
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 They update their forms periodically and will reject filings on outdated forms even if all the information is correct.
Yes, Delaware Division of Corporations website has all current UCC forms. Always download fresh rather than using saved copies from previous filings.
This is why UCC filings are so frustrating. Every state has different requirements and they change the rules without notice.
UCC filing sample forms - where to find templates that actually work?
I'm helping our small business secure equipment financing and the lender wants me to handle the UCC-1 filing myself to save on legal fees. Problem is I've never done this before and I'm terrified of messing up the debtor name or collateral description. Does anyone have UCC filing sample forms that show exactly how to fill out each section? I've looked at the SOS website but their examples are pretty basic. I need to see real-world examples of how to describe manufacturing equipment as collateral and make sure I get the exact business name format right. Any templates or sample forms would be huge help - this $150K loan depends on getting the UCC filing perfect.
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Have you considered just paying an attorney to handle this? $150K is a lot of money to risk on a DIY filing. A lawyer who does this regularly will probably charge $300-500 but could save you from costly mistakes.
I get wanting to save money, but messing up a UCC filing can void your entire security interest. That's way more expensive than attorney fees.
There's a middle ground - use one of those document checking services to verify your filing before you submit it. Cheaper than a lawyer but gives you confidence you got it right.
One more thing - make sure you understand the continuation requirements. UCC-1 filings are only good for 5 years, so you'll need to file a UCC-3 continuation before it lapses if the loan term is longer than that.
No, the original filing doesn't need any special preparation for continuation. Just make sure you file the UCC-3 continuation within 6 months before the 5-year expiration date.
Set a calendar reminder for year 4! I've seen people miss continuation deadlines and lose their security interest. That's not a mistake you want to make on a $150K loan.
UCC lien search Tennessee showing wrong debtor name - filing rejected twice
Got a major headache with a UCC lien search Tennessee situation. We're trying to file a UCC-1 for equipment financing on a $280K excavator deal, but the Tennessee SOS portal keeps rejecting our filing because the debtor name doesn't match what's showing up in their system. When I run the UCC lien search Tennessee database, it shows the company as 'ABC Construction LLC' but our loan docs have 'ABC Construction, LLC' (with the comma). The bank is breathing down my neck because we're supposed to close tomorrow and they won't fund without the perfected security interest. Filed twice already and got rejected both times with the same error code. Is this comma thing really going to kill our deal? The business is definitely the same entity - same EIN, same address, same principals. How picky is Tennessee about exact name matches? I've heard other states are more forgiving but this is my first Tennessee filing and I'm stressed.
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Tennessee SOS updated their system last year and it's been much stricter about name matching since then. You definitely need to use the exact name from their database. No shortcuts or approximations.
When did they update? I filed there in March and didn't have issues.
The update was in July. Much more automated now but way less forgiving of minor variations.
File it correctly with the exact name from the state database and you should be fine. Don't overthink it - just match exactly what Tennessee has on file. The loan docs having a comma doesn't matter for UCC purposes as long as the filing is accurate.
Thanks everyone. Going to resubmit with the correct name and better collateral description. Hopefully third time's the charm!
Good luck! Let us know how it goes.
Virginia Secretary of State UCC Search Issues - Can't Find Filed Liens
Having major problems with the Virginia Secretary of State UCC search function. Filed a UCC-1 three weeks ago for equipment financing deal, got confirmation it was accepted but now when I search by debtor name OR filing number nothing shows up. Is this normal? The SCC portal seems glitchy lately. Need to verify the lien perfected before loan closing next Tuesday. Anyone else experiencing search delays with Virginia filings? Starting to panic because borrower is asking for proof of filing and I can't pull anything from the database.
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Same boat here - filed a continuation in Virginia last week and it's nowhere to be found in the search results. Starting to wonder if their system update broke something with the indexing process.
Maybe we should start a group complaint or something? This is affecting too many people to be individual issues.
Not a bad idea. I know at least 3 other attorneys in my firm having similar problems with Virginia UCC searches this month.
Update: Called the help desk and they confirmed my filing is in the system but there's a 'technical display issue' affecting search results filed between March 1-15. They're working on a fix but no ETA. At least I know the lien is perfected even if I can't search for it online.
Thank goodness someone finally got a real answer. I was starting to think I was going crazy.
They said they'll send an email confirmation once the search display is fixed. Might take a few more days but at least the filings are valid.
CosmicCommander
Last week I had to file a UCC-3 amendment just to correct a debtor name that had been wrong on the original UCC-1 for two years. Nobody caught it until the loan was being renewed. Cost the client extra fees and delayed their funding. These name issues can have real consequences down the road.
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Sean Kelly
AuthorHow did you handle the gap period where the name was wrong? Was the lien still perfected?
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CosmicCommander
Had to do some legal research on that. Fortunately the error was minor enough that it probably wouldn't have affected perfection, but the amendment was still the right thing to do.
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Giovanni Colombo
This thread convinced me to double-check a UCC-1 I was about to file. Good thing too - I had "ABC Corp" but the state database shows "ABC Corporation". Would have been rejected for sure. Thanks for the heads up everyone!
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Luca Russo
Perfect example of why these discussions are helpful. Glad you caught it before filing!
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Zara Mirza
That's exactly the kind of error that's easy to miss but guaranteed to cause a rejection. Corp vs Corporation is a common one.
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