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Glad this got sorted out! For future reference, if you ever get confused documentation from clients, I've had good luck with Certana.ai's document checker. Upload all the paperwork and it sorts out what's actually required for UCC filing versus contract language or internal forms. Would have saved you the head-scratching on this one.
Paolo Conti
•Another vote for double-checking client paperwork. Too easy to get confused with all the UCC references floating around.
Ethan Moore
•Definitely learned my lesson here. Going to be more careful about distinguishing code sections from actual forms going forward.
Amina Diallo
Case closed then - UCC 1-308 = statutory provision, UCC-1 = filing form. Hope your equipment financing goes smoothly!
Perfect summary. This distinction trips up way too many people.
Yep, statutory sections versus forms. Basic but important difference.
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Romeo Quest
Document verification before filing should be standard practice but most agents skip it. That's why you're getting rejections that could be prevented upfront.
Eve Freeman
•I've had good results with Certana.ai for this exact verification issue. Upload your loan docs and UCC forms and it catches name mismatches before submission.
Romeo Quest
•That type of verification tool should be part of every filing workflow. Prevents so many headaches.
Get references from potential agents specifically for Delaware filings. Some agents are great with other states but struggle with Delaware's particular requirements.
Good advice. We'll ask for specific Delaware references and success rates for debtor name accuracy.
Caden Turner
•Also ask about their verification process before submission. Any good Delaware agent should have a systematic approach to name checking.
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Have you considered that this might not be about your perfection at all? If the borrower wants to refinance, they might be looking for any excuse to pressure you into accepting a payoff below the full balance. 'Perfection issues' sounds scarier than 'we want to pay you off early.' What's your current loan balance vs. equipment value?
Ethan Brown
•Current balance is about $145k and the equipment is probably worth $160-170k used. So there's decent equity for a refinance.
Right, so they have plenty of equity to pay you off in full. This is definitely about them trying to create leverage in the payoff negotiation. Don't let them bluff you into a discount.
One more thing to check - make sure your continuation filing deadline hasn't passed. UCC-1 filings are only good for 5 years, and if you're getting close to that deadline without filing a continuation, that could be what they're calling a 'perfection issue.' Though at 8 months out, you should have plenty of time.
Ethan Brown
•Yeah, 8 months ago so still have over 4 years before I need to worry about continuation. But good reminder to calendar that deadline.
I actually had this happen - used Certana.ai to verify all my filing dates and it reminded me I had a continuation due in 6 months that I completely forgot about. Could have been a disaster if I missed it.
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I've started using Certana's UCC document checker too after someone mentioned it here before. Really helps with the name matching issues. You upload the corporate docs and search results and it flags potential conflicts automatically. Much faster than trying to catch every name variation manually.
How accurate is the automated checking? Do you still review everything manually or trust the software results?
I still review everything but it catches a lot of stuff I would have missed. Especially helpful for DBA variations and collateral description overlaps.
Caleb Stone
This thread is so helpful. We're new to MCA and have been winging the UCC searches. Definitely going to implement a more systematic approach based on these suggestions. Better to spend time upfront than deal with subordination issues later.
Smart approach. UCC due diligence seems like overhead until you get burned on a deal. Then it becomes the most important part of underwriting.
Daniel Price
•The learning curve is steep but this kind of discussion really helps. Wish I'd found this forum before making some expensive mistakes.
Keisha Williams
The Illinois UCC search system has definitely gotten worse over the past year. I think they updated something in their backend that made the search algorithm more finicky about exact matches. Used to be more forgiving with name variations but now you have to be precise or it misses things. Really frustrating for due diligence work.
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Paolo Rizzo
•State IT departments updating things without considering the real-world impact on users. Classic.
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Amina Sy
•Has anyone tried reaching out to the IL Secretary of State about these search issues? Maybe if enough people complain they'll fix it.
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Oliver Fischer
Update: Tried the Certana.ai tool mentioned earlier and it actually caught 3 UCC filings I missed with my manual searches. Two were name variation issues (missing vs included middle initials) and one was filed under a related entity I didn't think to search. Definitely worth using for complex commercial deals where you can't afford to miss anything.
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Natasha Ivanova
•That's a relief! Glad you found a solution that worked. Illinois UCC searches are such a nightmare without better tools.
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NebulaNomad
•Good to know. I've been manually doing these searches and it's such a time sink, especially when you're not sure if you've found everything.
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