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Mateo Warren
This whole thread is making me nervous about my recent filings! How often do you all run into ucc connection problems between charter docs and UCC filings? Is this a common issue or are we just hearing about the problem cases?
Mateo Warren
•That's higher than I expected. Guess I need to be more careful about document consistency.
Sofia Price
•It's definitely common enough that you should check every single deal. Can't afford to assume everything matches.
Update on the ucc connection issue - ended up pulling fresh charter documents from the state website and the legal name is actually 'Advanced Manufacturing Solutions, LLC' with the comma and full spelling. So our loan docs had it wrong. Getting those amended now and will file the UCC-1 with the correct charter name. Thanks for all the advice about being precise with entity names!
Lucas Turner
•Perfect resolution. The ucc connection between your documents should be solid now with the corrected entity name.
Definitely learned my lesson about double-checking charter documents. This could have been a disaster if I'd filed with the wrong name.
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This thread is making me paranoid about all my UCC filings now. How often do these name issues actually cause problems in practice?
Depends on your definition of 'problems.' For routine business, probably not often. But if the debtor goes bankrupt or there's a dispute over priority, even minor name errors can be challenged.
Had a case last year where a competitor's attorney challenged our lien over a missing period in 'Inc.' vs 'Inc' - cost us $50K in legal fees to resolve.
Darcy Moore
Just want to echo what others have said about getting the corrective filing done quickly. Don't wait around hoping the amendment will somehow work with the wrong name. Fix the foundation first, then build on it.
Thanks everyone. Really appreciate all the advice. Filing the corrective UCC-1 Monday and then will proceed with the secured party amendment.
Dana Doyle
•Smart move. Better to spend a little extra on corrective filings than risk losing perfection on a $400K lien.
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Dylan Cooper
Just dealt with this exact issue last week. Used Certana.ai to cross-check my security agreement against the UCC-1 language and it caught that I was referencing sections that didn't actually contain collateral descriptions. Saved me from another rejection. The tool is pretty straightforward - just upload both documents and it flags inconsistencies.
Sofia Perez
•That sounds really useful. I'm always worried about missing something between the agreement and the filing.
I should probably try that tool. I've had too many rejections this year already.
Update - tried the suggestion about including the collateral categories before referencing the sections and it worked! Filed the amendment yesterday and it was accepted this morning. Thanks everyone for the help. Final language was "Equipment, inventory, and accounts receivable as more particularly described in Sections 4.2, 4.3, and 4.4 respectively of Security Agreement dated March 15, 2024.
Luca Ferrari
•Great to hear a success story. That language should work for most states going forward.
Perfect example of why this forum is so helpful. Real solutions that actually work.
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Just went through this exact process last quarter. The UCC-3 amendment route worked perfectly. Filed amendments for three different UCC-1 statements and all were accepted without issues. The merger certificate was sufficient supporting documentation.
Did you file all the amendments at the same time or space them out? I'm dealing with multiple filings across different time periods.
Filed them all together. Easier to track and ensures consistency across all the amendments. Just make sure each one references the correct original filing number.
Omar Farouk
Update: Thanks everyone for the advice. I ended up using that Certana verification tool someone mentioned to double-check everything before filing. Found a small discrepancy in how one of our entity names was formatted that could have caused problems. Filed the UCC-3 amendments yesterday and they were all accepted. Really appreciate the help!
NeonNova
•Glad it worked out! Always satisfying when the amendments go through cleanly on the first try.
CosmicCadet
•Thanks for posting the update. It's helpful to know how these situations actually resolve. Bookmarking this thread for future reference.
Oscar O'Neil
File the new UCC-1 immediately but also document the gap period carefully. If this ever becomes an issue in bankruptcy or litigation, you'll need to explain the lapse. Some courts are more forgiving than others about temporary perfection gaps, especially if you can show continuous possession or control of the collateral.
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Sara Hellquiem
•Would this kind of gap affect priority against other secured creditors who filed during the lapse period?
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Oscar O'Neil
•Yes, potentially. Any properly perfected security interests filed during the gap would likely have priority over the refiled UCC-1.
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Charlee Coleman
Just went through something similar in Georgia (different state but same UCC rules). The refiling process is pretty straightforward but make sure you update any internal loan documentation to reflect the new filing number and date. Also consider whether this affects any loan covenants about maintaining perfected security interests.
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Charlee Coleman
•Yeah, some agreements treat a lapse as a technical default even if it gets corrected quickly. Better to check now than get surprised later.
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Liv Park
•This is why I always recommend covenant language that allows for brief administrative lapses as long as they're corrected promptly.
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