UCC Document Community

Just went through this with our year-end audit. We ended up doing a comprehensive review of all our UCC-1s using Certana's verification tool, then filed UCC-3 amendments where needed. Made the audit process much smoother and gave us confidence in our security interest perfection.

Bottom line for 10-Q reporting - if there's material uncertainty about enforceability of secured positions, it needs to be disclosed. The name mismatches create that uncertainty even if you think the filings are ultimately valid.

For your specific situation with three laser cutters, I'd go with: 'Three industrial laser cutting machines: [Brand Model X, Serial #123], [Brand Model Y, Serial #456], [Brand Model Z, Serial #789], together with all attachments, accessories, and related equipment.' This gives you the specificity for the main items plus coverage for related components.

Just to add another perspective - I've handled several equipment financing deals and usually see a mix of approaches. Some lenders want everything super detailed, others prefer broader descriptions. It often depends on their internal policies and risk tolerance. But for $280K in identified goods, detailed descriptions are definitely the safer route.

Look, I hate to be the bearer of bad news but if you're 3 months behind and they've started the UCC sale process, your negotiation window is probably closed. Focus on making sure they follow proper procedures and maximize the sale price so you don't end up with a huge deficiency judgment.

Update us on what happens! These sale of collateral under ucc situations are always educational for the rest of us. Hope you find some procedural errors that give you more time to work things out.

Pro tip: when you're preparing for audits, create a UCC filing summary spreadsheet that lists every filing, amendment, and termination with dates and filing numbers. Auditors love seeing organized documentation even if they don't ask for every individual document.

Bottom line is you need to keep more than just the basic UCC forms. Search reports, filing confirmations, correspondence about rejected filings, amendment documentation - it all matters for a complete audit trail. Better to keep too much than too little when it comes to UCC records.

For what it's worth, I've found that calling the SOS filing office directly can sometimes get you clearer guidance on these Section 308 interpretation questions. Not all states are helpful but some will walk through the specific requirements for your situation.

Update us when you get this resolved! I'm dealing with a similar Section 308 situation and curious how the amendment-first approach works out for you.