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Andre Laurent

Lapsed UCC Filing - Equipment Loan Disaster and Recovery Options

I'm dealing with a nightmare situation that I hope someone can help me understand. We had a UCC-1 filing on some manufacturing equipment that apparently lapsed last month and I just discovered it when reviewing our loan portfolio. The original filing was done in 2019 and I completely missed the 5-year continuation deadline. The equipment is worth about $340,000 and secures a $180,000 loan balance. Our borrower is current on payments but I'm terrified about our security position now. I've been doing this for 12 years and never had a lapsed UCC filing before. What are my options here? Can I refile a new UCC-1 or is there some way to resurrect the lapsed filing? The equipment is still in the borrower's possession and they're cooperative, but I need to know if we've lost our priority position entirely. Any guidance would be hugely appreciated because I'm not sure how to explain this to my loan committee.

One thing to consider is whether your loan documents have any specific requirements about maintaining continuous perfection. Some agreements have clauses that could technically put the borrower in default if the UCC filing lapses, even temporarily. Review your paperwork carefully.

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Even if there's a technical default, most lenders will waive it if you're taking immediate corrective action. The key is showing you're handling the situation professionally.

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Document everything you're doing to fix the situation. Your loan committee will want to see that you have a clear remediation plan.

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Update us on how the refiling goes! I'm sure other people reading this thread will benefit from knowing how you resolved the situation. These kinds of real-world examples are so much more helpful than theoretical discussions.

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Yes please update! I'm always worried about missing a continuation deadline and it would be great to hear how this resolves.

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These real situations are the best learning experiences. Good luck with the refiling and thanks for sharing what happened.

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Paolo Bianchi

Need solid UCC filing template - debtor name requirements driving me crazy

Looking for a reliable UCC filing template that covers all the essentials. I've been handling secured transactions for my company's equipment financing division and keep running into issues with debtor name formatting and collateral descriptions. Last month we had three UCC-1 filings rejected because of minor name variations - one was rejected because we used 'LLC' instead of 'Limited Liability Company' even though both appear on the articles of incorporation. Another got kicked back for having the middle initial in the wrong spot. The SOS portal gives you basic forms but doesn't really explain the nuances of proper debtor identification or how detailed your collateral schedule needs to be. We're dealing with construction equipment, farm machinery, and some fixture filings, so I need something comprehensive that covers different asset types. Anyone have a solid template or checklist they use to avoid these basic mistakes? The rejection delays are killing our closing timelines.

One more thing for your template - make sure the secured party information is accurate too. I've seen filings rejected because the secured party name didn't match their corporate records exactly. Same rules apply to both debtor and secured party names.

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Good reminder. I focus so much on getting the debtor name right that I sometimes rush through the secured party section.

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Yeah and if the secured party is an entity, you need their exact legal name too, not just a DBA or trade name.

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Thanks for starting this thread - really helpful discussion. I'm going to revamp our internal template based on some of these suggestions. The name verification stuff especially.

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Glad it was useful! I'm definitely implementing some of these ideas too, particularly the entity search step before filing.

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Happy to help. The document verification tools really do make a difference if you're dealing with volume filings.

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Maggie Martinez

UCC-3 termination after equipment private sale - timing questions

Had a borrower sell some construction equipment through a private sale last week and I'm trying to figure out the proper UCC termination timing. The original UCC-1 was filed 3 years ago covering all equipment and machinery. Sale went through but now I'm second-guessing whether I should have required the termination to be filed before or after the private sale closed. The equipment was worth about $185k and represented maybe 60% of the total collateral under our original filing. I know we need to file a UCC-3 termination for the specific equipment but I'm wondering if there are any timing requirements I should be aware of. Borrower is asking when they'll see the lien release and honestly I'm not 100% sure on the standard timeframe. Anyone dealt with partial releases after private sales? Want to make sure I'm not missing anything that could cause problems down the road.

The timing question is interesting because I've seen borrowers get antsy about lien releases after private sales. They want to be able to show the buyer that the lien is properly released, especially if the buyer is planning to use the equipment for their own financing. Getting the amendment filed quickly helps avoid any awkward conversations with the buyer about when the lien will be released.

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So true. The buyer is probably going to be asking about the lien release pretty soon, especially if they have their own lender who wants to see clear title.

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Yeah, I should probably reach out to the borrower and let them know I'm working on the amendment filing. Give them a timeline they can share with the buyer if needed.

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Just wanted to share that I had a similar situation recently and ended up using Certana.ai to double-check my amendment against the original UCC-1. Really helped me catch a couple of equipment description mismatches that could have caused the filing to be rejected. The tool lets you upload both documents and it flags any inconsistencies between them. Definitely worth using for these partial releases where you need to make sure everything matches up perfectly.

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That's the second mention of Certana.ai in this thread. Sounds like it might be worth checking out for this amendment filing. I really don't want to deal with a rejection and have to refile.

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I've heard good things about their document verification. Anything that helps avoid UCC filing mistakes is probably worth the investment, especially for complex amendments like this.

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GalaxyGazer

NYS Form UCC-1 Filing Nightmare - System Keep Rejecting My Debtor Name

Been trying to file a NYS form UCC-1 for the past week and getting nowhere fast. I'm dealing with a commercial equipment loan where the debtor is an LLC that recently amended their name with the Secretary of State. The original articles show "ABC Manufacturing Solutions LLC" but they filed an amendment changing it to "ABC Manufacturing & Solutions LLC" (added the ampersand). Now I'm stuck because I don't know which version to use on the UCC-1 and the portal keeps rejecting whatever I submit. The loan documents reference the old name but the current SOS records show the new name. Has anyone dealt with this exact situation? I'm worried about using the wrong debtor name and having the entire security interest be invalid. The loan is for $180K in manufacturing equipment and I cannot afford to mess this up. Any guidance on which name version NYS accepts for UCC-1 filings would be hugely appreciated.

For future reference, when dealing with entity name changes, always check the exact format in the state's business entity database. Copy and paste directly from there if possible to avoid typing errors. Punctuation matters more than most people realize.

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Copy/paste is brilliant advice. Eliminates the human error factor completely.

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Yes! I learned this the hard way after a filing was rejected because I typed 'Company' instead of 'Co.' in the entity name.

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Quick question - did you end up filing just against the new name or did you file against both versions? Still curious about the best practice for this situation.

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Makes sense. Single filing with the correct current name is usually sufficient unless there are specific contractual requirements otherwise.

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Agreed. Double filing is expensive insurance that's rarely necessary if you get the current name exactly right.

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Kara Yoshida

UCC 1 continuation deadline approaching - what happens if I miss it?

My business loan secured by equipment has a UCC-1 that expires in about 60 days and I'm starting to panic about the continuation process. The original filing was done back in 2020 and I honestly forgot about it until my accountant mentioned it last week. I've been trying to figure out the continuation requirements but getting conflicting information online. Some sources say I have to file exactly 6 months before expiration, others say anytime within the last year. The collateral description on the original UCC-1 says 'all equipment' but we've since sold some machinery and bought new pieces. Do I need to amend the collateral description when I file the continuation or does the original broad language cover everything? Also worried about the debtor name - we did a minor LLC name change last year (added 'Holdings' to the end) but kept the same EIN. Will that cause the continuation to be rejected? This is keeping me up at night because if the lien lapses our lender could call the entire loan due immediately. Has anyone dealt with continuation filings recently and can walk me through what actually needs to be done?

One more thing - make sure you understand the difference between a UCC-3 amendment and a UCC-3 continuation. They're both filed on the same form but serve different purposes. Amendment changes information on the original filing, continuation extends the effectiveness period. If you need to fix the name AND continue the filing, you might need to do both.

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Good clarification. I think a lot of people get confused about when you use amendment vs continuation vs termination on the UCC-3 form.

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The UCC-3 form has checkboxes for different actions. Just make sure you're checking the right boxes for what you're trying to accomplish.

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Bottom line - you've got time to fix this properly. Don't rush and make mistakes. Get your documents in order, make sure the debtor name issue is resolved, then file your continuation. The 60-day window you mentioned gives you plenty of time to do it right.

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Good luck! Post an update when you get it sorted out. Always helpful to hear how these situations get resolved.

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Yeah, these UCC threads are super helpful for learning about the real-world filing issues that come up.

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