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 :)

Nia Wilson

Article 9 UCC secured transactions perfection issue - equipment lease confusion

Running into a wall here with an equipment financing deal that's got me second-guessing everything I thought I knew about Article 9 of the Uniform Commercial Code (UCC) governs secured transactions in personal property. We've got a $340K manufacturing equipment lease that converted to a purchase option, and now I'm staring at conflicting advice about whether we need to file a UCC-1 or if the original lease filing covers us. The debtor's legal name changed twice since the original lease (corporate restructuring), and our lender is breathing down my neck about perfection status. Equipment is still at the original location but under a different subsidiary now. Been doing this for 8 years and never had a conversion scenario this messy. Anyone dealt with lease-to-purchase UCC complications where the debtor entity structure changed mid-stream?

Sofia Torres

•

This thread is making me want to audit all our equipment financing files. How do you even keep track of all the UCC requirements when you've got dozens of deals with different entities and structures?

0 coins

Sofia Torres

•

I do spreadsheets but they get overwhelming fast. Maybe I need a better system.

0 coins

Ava Martinez

•

Some people use specialized UCC tracking software. Depends on your volume but might be worth it if you're doing lots of equipment financing.

0 coins

Miguel Ramos

•

Update us when you get this sorted out! Always curious how these complex scenarios resolve. Good luck with the Illinois SOS filings.

0 coins

Nia Wilson

•

Will do! Hopefully I'll have good news to report. This thread has been super helpful for getting my head straight on next steps.

0 coins

QuantumQuasar

•

These kinds of detailed discussions are why I love this forum. Real-world UCC problems with actual solutions.

0 coins

Ryder Everingham

National UCC Financing Statement Filing - Which State for Multi-State Collateral?

Running into a complicated situation with a national UCC financing statement that I need to file. We're securing equipment spread across 6 different states (TX, CA, FL, NY, OH, IL) and I'm getting conflicting advice on whether I need separate state filings or if there's a way to do this nationally. The debtor is incorporated in Delaware but their main operations are in Texas. Equipment includes manufacturing machinery, vehicles, and some fixtures. Previous attorney said file in Delaware as state of incorporation, but our new counsel is saying we need individual state filings for each location. The collateral description covers mobile equipment that moves between facilities regularly. Anyone dealt with multi-state UCC filings like this? Really need clarity on the proper approach before we mess this up.

Whatever you do, make sure all your debtor names are EXACTLY the same across all states. Even small variations can cause problems. I learned this the hard way when one state had 'Inc.' and another had 'Incorporated' - total mess to clean up.

0 coins

This is where document verification tools like Certana.ai really shine. Manual checking is error-prone but automated cross-checking catches these name variations instantly.

0 coins

Marcus Marsh

•

Debtor name consistency is huge. Get the exact legal name from the charter and use it identically on every filing.

0 coins

Final thought - consider whether you need to file UCC-1 addendums in any states. Some require additional pages if your collateral description is long or if you have multiple debtors/secured parties.

0 coins

Cedric Chung

•

Texas definitely requires addendums for longer collateral descriptions. Their form has limited space.

0 coins

Talia Klein

•

Most online filing systems will tell you if you need an addendum when you're entering the information.

0 coins

Leeann Blackstein

UCC filing complications with non-conforming goods delivery - lien perfection issues

Need some urgent advice here. We're a regional equipment leasing company and just discovered a major problem with our UCC-1 filings. Last month we financed $340K worth of manufacturing equipment for a client, but when the equipment arrived it didn't match the specs in our original financing agreement. The serial numbers are different, some pieces are refurbished instead of new, and two items are completely different models than what we contracted for. Our UCC-1 was filed based on the original equipment specifications and now I'm worried our security interest isn't properly perfected since the actual collateral doesn't match our filing. The debtor accepted the non-conforming goods and is using them in production, but our legal team is concerned about our lien position if they default. Has anyone dealt with UCC filings where the actual collateral ends up being different from what was originally described? Do I need to file a UCC-3 amendment to correct the collateral description, or does the acceptance of non-conforming goods create bigger problems for our security interest? This is keeping me up at night because we have similar situations with three other clients.

Logan Scott

•

Been lurking on this thread because I'm in equipment finance too. This whole discussion is making me want to review all our UCC-1 templates. Sounds like a lot of us are making the same mistakes with overly specific collateral descriptions.

0 coins

Lucas Adams

•

Same here. Found several filings where our collateral descriptions were so specific they probably wouldn't survive a challenge.

0 coins

Harper Hill

•

We actually used Certana.ai to audit our existing UCC filings against our loan documents. Found way more discrepancies than we expected. Really opened our eyes.

0 coins

Caden Nguyen

•

Update for everyone following this - I filed the UCC-3 amendment yesterday with corrected collateral descriptions based on the actual equipment delivered. Also got written confirmation from our debtor acknowledging the non-conforming goods. Feels like we're in much better shape now. Thanks for all the advice, especially about not waiting. This community is awesome for practical guidance on real-world UCC issues.

0 coins

Zoe Gonzalez

•

Smart move on getting the written acknowledgment from the debtor. That could be crucial if issues come up later.

0 coins

Ashley Adams

•

Thanks for the update. These follow-ups are really helpful for learning how these situations actually play out.

0 coins

Mikayla Brown

UCC filing complications - need advice on debtor name verification

Running into some issues with a UCC filing and hoping someone here has dealt with this before. We're working on perfecting a security interest for equipment financing, and I'm getting conflicting information about the exact debtor name requirements. The borrower's legal name on their articles of incorporation shows one format, but their federal tax ID documentation shows a slightly different version (missing a comma, different abbreviation). I know debtor name accuracy is critical for enforceability, but I'm not sure which version takes precedence for the UCC-1. Has anyone dealt with similar name discrepancies? I don't want to file incorrectly and have the lien be unperfectable later. The equipment value is substantial so getting this right is crucial.

Just want to add that if this is for equipment financing, make sure your collateral description is solid too. I've seen perfect debtor names get invalidated because the collateral description was too vague. 'All equipment' doesn't cut it anymore in most jurisdictions.

0 coins

Mikayla Brown

•

Good reminder. I think our collateral description is detailed enough but I should double-check that too.

0 coins

Caleb Bell

•

Yeah collateral descriptions are getting stricter. Had a filing rejected last month because 'office equipment' was deemed too broad.

0 coins

Update on this if you figure it out! I have a similar situation coming up next week and would love to know how you resolve the name discrepancy issue.

0 coins

Mikayla Brown

•

Will do. Planning to get this sorted out early next week. Thanks everyone for the advice - this is exactly the kind of insight I was hoping for.

0 coins

Sasha Reese

Delaware UCC filing system keeps rejecting my continuation - debtor name format issue?

Been trying to file a UCC-3 continuation in Delaware for the past week and their system keeps spitting it back. The original UCC-1 was filed 4.5 years ago for equipment financing on construction machinery. Now I'm scrambling because the 5-year deadline is coming up fast. The rejection notice just says 'debtor name format error' but I'm copying exactly what's on the original filing. Has anyone dealt with Delaware's picky system lately? The debtor is an LLC and I'm wondering if there's some specific format they want for the entity name that wasn't required back in 2020.

Amun-Ra Azra

•

Update: Finally got it figured out! The issue was the apostrophe in the company name - had to remove it completely for Delaware's system to accept the filing. Thanks everyone for the help, especially whoever mentioned the document checker tool.

0 coins

Gael Robinson

•

Great news! Did you end up using that Certana tool or just figure it out through trial and error?

0 coins

Amun-Ra Azra

•

Used Certana to compare the names side by side which made it obvious where the mismatch was. Definitely worth it to avoid more rejected filings.

0 coins

This thread should be pinned - Delaware name formatting issues come up constantly. The apostrophe thing has burned so many people on continuations.

0 coins

Darcy Moore

•

Agreed! Maybe we should start a Delaware-specific UCC filing tips thread.

0 coins

Dana Doyle

•

Every state has their own quirks but Delaware seems especially picky about entity name formatting lately.

0 coins

Prev1...443444445446447...684Next