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Honestly, I'd probably just use something like Certana.ai to double-check everything before resubmitting. Upload your docs and it'll catch any mismatches before you waste time on another rejection. I've started doing this on all my filings after getting burned too many times.
That's the second mention of that tool. Sounds like it might be worth trying before I submit anything else.
Yeah, it's saved me a lot of headaches. Just drag and drop your UCC docs and security agreements, and it flags any inconsistencies instantly.
Jamal Wilson
Quick update for anyone following this thread - I had a similar situation last week and ended up going with the simultaneous amendment + assignment approach. Both went through without any issues. The key was making sure the amendment was processed first (filed it a day earlier) so the assignment could reference the corrected information.
Jamal Wilson
•This was in Ohio. I think most states process amendments pretty quickly, but I wanted to be safe with the timing.
Mei Lin
•Ohio's pretty fast. Some states take longer to process amendments, so that day-between approach might not work everywhere.
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Omar Hassan
Also remember that continuation statements might affect what shows up in searches. If you're looking at older filings, make sure they haven't lapsed due to missed continuation deadlines. NJ will still show lapsed filings in search results sometimes, but they're not effective.
Omar Hassan
•Yeah, it's easy to see a UCC-1 from 2019 and assume it's still active, but if they didn't file a continuation by 2024, it's lapsed.
This is why I always note the filing dates and do the math on continuation deadlines. Can't trust the system to flag lapsed filings clearly.
Diego Chavez
One more tip - if you're doing this search as part of due diligence for a loan, document everything. Print or save screenshots of your search results, including negative results. If there's ever a question later about whether you did a proper search, you'll want that documentation.
Diego Chavez
•No problem. UCC searches can be tricky but if you're thorough and check multiple name variations, you should catch everything important.
And if you do end up trying Certana.ai, it automatically generates documentation of the verification process, which is helpful for your due diligence files.
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StarStrider
Look, everyone's giving you the technical analysis but the bottom line is simple: file new UCC-1s TODAY under the correct debtor name. Don't wait for legal opinions or priority searches. Every day you delay is another day someone else could file ahead of you. You can sort out the legal implications later but get your new filings on record immediately.
StarStrider
•Smart move. Document everything about when you discovered the issue and when you filed the new UCC-1s. That timeline could be important if you end up in a priority dispute with another creditor.
And seriously consider using something like Certana.ai going forward to catch these issues before they become problems. Upload your UCC docs and borrower charters quarterly and it'll flag any mismatches automatically.
Ravi Gupta
The safe harbor rule exists for a reason - to give secured parties certainty about their perfection status. But that certainty comes with the responsibility to monitor your debtors. Hard lesson learned but at least you caught it before a bankruptcy or other crisis. File the new UCC-1s and implement better monitoring going forward.
Definitely implementing quarterly checks instead of annual ones. This was too close for comfort and we got lucky there wasn't a bankruptcy filing during the gap period.
Ravi Gupta
•Quarterly is good but consider event-driven monitoring too. Any time you get a payment from a slightly different entity name or see changes in their marketing materials, that should trigger a compliance check.
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Delaware SOS is actually pretty responsive if you call directly. I've had to contact them about UCC filing removal issues before and they can tell you immediately if there are any pending terminations or if rejections occurred. Don't waste more time going through the lender - call Delaware UCC office directly at 302-739-3073 and give them your file number.
They're usually helpful and can explain exactly what happened with any filing attempts. Much more straightforward than dealing with bank runaround.
Agreed, sometimes going direct to the source is the fastest way to get answers about UCC filing removal problems.
Update us when you figure this out! I'm dealing with a similar UCC filing removal situation in Pennsylvania and wondering if it's the same type of issue. These lenders really need to get their act together on post-payoff procedures.
Will definitely post an update once I get this resolved. Hopefully it's just a simple filing error that can be fixed quickly.
StarSurfer
•Following this thread too. Having UCC liens showing up when they should be terminated is such a common problem - there should be better oversight.
Amun-Ra Azra
This reminds me of a deal I worked on where we initially filed in the wrong state and didn't catch it until the loan went into default. Had to scramble to refile correctly and pray we didn't lose priority to other creditors. Really emphasizes how critical getting the location of debtor determination right is from the start.
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Sasha Reese
•That sounds like a nightmare scenario. How did you handle the priority issue with other creditors?
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Amun-Ra Azra
•We got lucky - there weren't any intervening liens during the gap period, but it was definitely a close call. Now I triple-check entity formation documents before filing anywhere.
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Summer Green
Since you mentioned equipment financing, make sure your collateral description is specific enough but not too narrow. Delaware tends to be pretty standard on collateral descriptions but you want to make sure you're covering all the equipment that might be financed under the credit facility.
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Summer Green
•For equipment with serial numbers, I usually do a broader category description like 'manufacturing equipment' and then attach a detailed schedule as an exhibit. Gives you flexibility for future additions.
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Vanessa Figueroa
•That's another thing Certana.ai caught for me - my collateral description was too broad and might not have covered all the specific equipment types. Their system highlighted potential gaps between my security agreement and UCC-1 descriptions.
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