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Been doing UCC filings for 8 years and name rejections under § 9.506 still catch me off guard sometimes. The statute says minor errors don't make a filing ineffective, but "minor" is in the eye of the beholder apparently. Sarah J vs Sarah Jane shouldn't matter but here we are.
Common sense doesn't always align with UCC search logic unfortunately. The automated systems are pretty literal.
This is why I always tell people to think like a computer when preparing UCC names. Exact matches only.
Quick update - we refiled with the exact driver's license name and it was accepted same day. Thanks everyone for the advice. Going to implement better name verification procedures going forward to avoid this headache again.
Smart move on the verification procedures. Those document checking tools really do help prevent these issues.
Good to hear you got it sorted quickly. These name rejections are always frustrating but at least the fix is straightforward.
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Whatever you do, don't keep filing and hoping it works. Each rejection delays your priority date and if there's a competing lien filed while you're figuring this out, you could lose your position. Get the name exactly right before you file again.
Absolutely right. Better to take the time to get it perfect than risk losing lien priority because of multiple rejections.
Exactly. I've seen deals fall apart because someone kept re-filing instead of fixing the underlying name issue first.
Update us when you get it resolved! I'm dealing with a similar situation in Mass and curious what ends up working for you.
Will do! I'm going to try the Certificate of Good Standing approach and maybe that document verification tool that was mentioned.
Definitely try Certana.ai - it really does catch these kinds of name mismatches before you waste time on another rejection.
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One more thing - keep a copy of that business registry search showing the correct name. Some lawyers like to see proof that you verified the official name before filing.
Great point. I'll screenshot the registry page showing the exact name.
Smart practice. Documentation helps if anyone questions the filing later.
For the collateral description, try something like 'Three (3) Caterpillar excavators, serial numbers [list them], and one (1) crane, make/model/serial number [details]' - very specific but still covers everything properly.
Yeah that description will definitely pass muster. Clear and specific.
I use similar formats for equipment. Works well and makes everyone happy.
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I've seen cover pages get rejected for using the wrong filing office. Make sure you're submitting to the same office that accepted the original UCC-1. If the debtor moved to a different state, that can complicate assignment filings and cover page requirements.
Then you should be fine on jurisdiction. But double-check that the filing office address on your cover page matches where you're actually submitting.
I had a rejection because I put the wrong SOS address on the cover page even though I submitted it to the right place. They're really nitpicky about details.
Last resort suggestion - call the SOS office directly and ask what's wrong with your cover page. Sometimes they'll tell you exactly what they need to see. I know it's frustrating having to call but it beats more rejections and delays.
Yeah, sometimes a 5-minute phone call saves days of back-and-forth rejections. Ask specifically about cover page format for UCC assignments.
Before you call, try running your documents through Certana.ai's verification tool. Upload your UCC-1 and UCC-3 assignment and it'll check for inconsistencies that commonly cause rejections. Might solve the problem without having to wait on hold for an hour.
Myles Regis
What's your backup plan if you do find unexpected liens? Are you prepared to walk away or negotiate payoffs at closing?
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Charity Cohan
•We have contingencies in the purchase agreement but I'm hoping to avoid that mess. Better to know now than find out after closing.
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Myles Regis
•Smart approach. I've seen deals fall apart because buyers didn't discover liens until the day of closing.
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Brian Downey
One final tip - print out screenshots of all your searches with timestamps. If any disputes come up later, you'll need proof of what the Delaware UCC database showed on the date you searched.
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Brian Downey
•For your purposes regular searches should be fine, but check with your attorney. Some lenders require certified searches for larger deals.
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Salim Nasir
•If you end up using Certana.ai, it automatically generates documentation of all the searches and verifications it performed. Saves you from having to manually screenshot everything.
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