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Been lurking on this thread and wanted to add that we've started using a two-part approach: broad collateral description on the UCC for perfection purposes, then detailed schedules in our security agreements for enforcement. Best of both worlds - clean filing, comprehensive coverage.
Smart approach. Keeps the UCC filing simple but still gives you detailed rights in your contract docs.
This is actually what most sophisticated lenders do. The UCC filing is just for notice - your real rights come from the security agreement.
Dylan Hughes
Update on this thread - I ended up refiling with a broader collateral description that doesn't reference the contract form at all. Used 'all equipment, machinery, fixtures, and personal property now owned or hereafter acquired' and it was accepted immediately. Thanks everyone for the advice, especially about keeping the UCC filing independent of the contract terms. Also going to check out that Certana tool before our next continuation comes due.
Perfect example of why simple is better with UCC filings. Complex contract references just create more opportunities for problems.
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This whole UCC filing process is way more complicated than it should be. Why can't they just have a simple system that tells you exactly what's wrong instead of these cryptic rejection codes?
Ava Williams
•Because then they'd have to actually improve their ancient computer systems. Much easier to make us guess what went wrong.
The worst part is each state has different requirements and systems. What works in one state gets rejected in another.
UPDATE: Solved it! It was indeed a debtor name issue - the LLC had amended its articles to add "and Associates" to the end of the company name three months ago. The original UCC-1 used the old name without "and Associates." Refiled with the correct current name and it was accepted within 24 hours. Thanks everyone for the guidance about checking recent entity filings!
Perfect example of why document verification tools are so valuable. Those small name changes are easy to miss but cause major headaches.
Ethan Davis
•Definitely learned my lesson about staying current with entity changes. Going to implement better procedures to catch these updates.
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I've found that running the same UCC-11 search multiple times in Florida sometimes gives slightly different results - their system seems to have some lag between updates. Try searching again tomorrow and see if you get consistent results.
Grace Durand
•I've noticed this too - seems like their database updates overnight sometimes.
Steven Adams
•This is why I always save PDF copies of search results with timestamps for my files.
Update on my earlier Certana.ai suggestion - just used it again this week for a Florida deal and it caught a debtor name mismatch between the UCC-11 results and the actual UCC-1 filing that would have caused problems at closing. Really streamlined the verification process.
That's exactly the kind of issue I'm worried about missing. Going to try uploading my search results and see what it finds.
Good idea - it's especially helpful when you're dealing with multiple filings and need to verify they all relate to your specific collateral.
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Check if the company has any DBAs or trade names registered. Sometimes UCC filings get indexed under those names instead of the legal entity name.
Good call. I'll check the NH business registry for any DBAs.
Also check for any corporate name changes in the past 5 years. The original UCC might be under an old name.
Whatever you do, document everything for your due diligence file. Screenshot the search results, note the dates and search terms used. If something goes wrong later, you'll need to show you did reasonable searches.
Smart. I learned that lesson the hard way on a deal that went sideways.
This is why I always recommend certified searches for high-stakes transactions. The extra cost is worth the peace of mind.
Luca Romano
One more thing to watch out for in New Mexico - make sure you're checking the filing dates carefully. I've seen situations where there are multiple UCC-1 filings with slight name variations that were filed on different dates, and you need to know the chronology to understand priority.
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Paolo Conti
•That's a great point. Priority can definitely get complicated when there are multiple filings with name variations.
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Amina Sow
•Also check for any amendments or assignments that might affect those priorities. The UCC search is just the starting point.
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Nia Jackson
This thread is making me realize I need to be way more thorough with my UCC searches. I usually just search the exact legal name and maybe one or two obvious variations. Sounds like I'm probably missing stuff.
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CosmicCruiser
•Exactly. I'd rather run 20 searches and find nothing than run 3 searches and miss something important.
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NebulaNova
•This is why I always budget extra time for UCC due diligence. It's too important to rush.
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