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 :)
Join the conversation
Join the conversation
GalacticGuru
Once you get the UCC-3 filed, make sure to send a copy to the borrower for their records. Good practice and some loan agreements require it.
Definitely. Our loan docs require us to provide copies of all UCC filings to the borrower within 30 days.
GalacticGuru
•Sounds like you're on top of it. The Tennessee filing should be straightforward once you have all the details right.
Thanks everyone for the help! I found the UCC-3 form on the Tennessee SOS site and got it filed electronically this morning. Used some of the tips from this thread about exact name matching and collateral descriptions. Really appreciate all the guidance - this forum is incredibly helpful for UCC issues.
Great outcome. Hope the filing gets accepted quickly.
Just got the acceptance notice! Filed this morning and approved this afternoon. Tennessee's electronic system really is fast once you know where to find everything.
Join the conversation
Monique Byrd
This kind of situation is exactly why I always do multiple searches from different sources and then reconcile them manually. It's a pain but better than missing something important. For Connecticut I usually check the SOS site, run a commercial search, and then do spot checks on any questionable results.
It shouldn't be necessary but unfortunately it is. The systems just aren't reliable enough on their own.
Especially for big transactions like this one. Can't afford to miss anything.
Lia Quinn
Update: I ended up ordering the certified search and also pulled copies of all the actual filings. Turns out the discrepancy was because one of the UCC-3 filings was actually a partial termination that reduced the collateral coverage but didn't terminate the entire filing. The search summaries weren't clear about this distinction. Thanks everyone for the advice - this could have been a major problem if I hadn't caught it.
Perfect example of why you need to look at the actual documents, not just rely on search results.
Great outcome! This is exactly the kind of thing Certana.ai would have flagged automatically, but sounds like you got it sorted either way.
Join the conversation
Not trying to pile on, but have you considered that this might be a good time to bring in outside counsel? If you're questioning 200+ filings, that's potentially millions in unsecured exposure.
Xan Dae
•The thought has crossed my mind, but I'm hoping to resolve this internally first. Legal fees would be astronomical for a full portfolio review.
True, but the cost of having invalid liens could be much worse. Maybe start with a spot check of your biggest exposures?
Rajan Walker
Update us when you get this resolved - I'm dealing with similar debtor name headaches on three different deals right now. Would love to know what works for you.
Xan Dae
•Will do. Going to try that Certana.ai tool first and see if it catches anything else I'm missing, then probably bite the bullet and file with the exact Articles name.
Smart approach. Document verification before filing is so much cheaper than fixing rejected filings after the fact.
Join the conversation
BTW - after disposal you'll need to account for proceeds under 9-615. Make sure you have documentation for all expenses (storage, legal, disposal costs) that you can deduct from sale proceeds before applying to the debt.
Aiden Chen
•Good reminder. We've been tracking storage costs since we took possession. Legal fees are adding up too with all the debtor disputes.
Keep detailed records of everything. Reasonable expenses are deductible but "reasonable" can be subjective if the debtor challenges your accounting later.
One last thing - after you dispose of the collateral, if there's still a deficiency, you'll want to make sure your UCC-1 was properly filed in all the right places. If the debtor moves to a different state or changes their organization type, it can affect where you should have filed. Any issues with the original filing could impact your deficiency claim.
Yeah, I've seen cases where a debtor changes from LLC to corporation or moves their principal place of business and it affects the filing requirements retroactively.
This is why I love the Certana.ai tool - upload your original UCC filing with current debtor info and it flags any potential jurisdiction or name issues that could affect your perfection status.
Malik Johnson
The key thing to remember is that UCC search results are only as good as what was originally filed. If someone filed a UCC-1 with a typo in the debtor name 5 years ago, that's what you'll see forever unless they file an amendment. The SDAT system doesn't clean up or standardize anything. It's all about garbage in, garbage out. That's why getting it right the first time is so critical.
0 coins
Isabella Ferreira
•This is why I always double-check the debtor name against multiple sources before filing. One typo can void your entire security interest.
0 coins
Fatima Al-Suwaidi
•Thanks everyone for the advice. Sounds like I need to be way more careful about name verification upfront instead of trying to sort it out later.
0 coins
Ravi Sharma
Just wanted to add that if you're doing high-volume UCC work, it's worth investing in better verification tools. I tried doing everything manually for years and it was killing me. Now I use automated systems that cross-check entity names against state databases and flag discrepancies before I even file. Costs a bit more upfront but saves tons of time and reduces errors.
0 coins
Fatima Al-Suwaidi
•What kind of volume are you talking about? We probably do 20-30 UCC filings per month.
0 coins
Ravi Sharma
•We're doing probably 100+ per month across multiple states. At that volume, manual checking just isn't feasible anymore.
0 coins