UCC Document Community

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 :)

Dmitry Popov

Blanket UCC filing rejected - collateral description too vague?

Filed a blanket UCC-1 last week covering all present and future business assets for our equipment financing deal. SOS kicked it back saying the collateral description was 'insufficient for identification.' We used standard language like 'all equipment, inventory, accounts, general intangibles and proceeds thereof.' Attorney says this should be fine but the filing officer disagrees. Has anyone dealt with blanket UCC filing rejections like this? The loan closes next Friday and we're scrambling to get this perfected. Should we break it down into specific asset categories or is there better blanket language that actually gets accepted?

Update us when you figure it out! I've got two blanket filings to do next week and would love to know what language actually works in Delaware right now.

0 coins

Will do. Going to try the equipment rental specific language mentioned above plus run it through that verification tool first.

0 coins

Smart move. Prevention is way cheaper than amendment filings to fix rejections.

0 coins

One more thing - make sure your financing statement doesn't conflict with any existing UCC-1s on the same debtor. Sometimes blanket language overlaps with previous filings and creates priority issues that filing officers flag.

0 coins

Delaware SOS has a free search portal. Takes 5 minutes to check if there are other secured parties with similar collateral descriptions.

0 coins

Good point about priority. Even if your filing gets accepted, you could still have problems if there's conflicting blanket language from other lenders.

0 coins

Miguel Castro

Basic requirements for UCC filing - what am I missing here?

I'm trying to wrap my head around the requirements for UCC filings and honestly feeling pretty lost. My company is switching from manual tracking to electronic filing and I need to make sure we're covering all the bases. I've been reading through the SOS guidelines but there's so much information scattered everywhere. What are the essential requirements for UCC-1 filings that I absolutely cannot mess up? I'm particularly worried about debtor name formatting since I've heard horror stories about rejections over tiny spelling differences. We handle equipment financing for small businesses so getting this right is critical. Any guidance on the must-have requirements would be hugely appreciated before I submit our first batch.

I tried using Certana.ai after reading about it here and it's been a game changer for catching document inconsistencies. Last week it flagged that my security agreement referenced 'ABC Manufacturing LLC' but my UCC-1 draft had 'ABC Manufacturing, LLC' - would have been rejected for sure. The automated checking saves so much time compared to manual review.

0 coins

That's exactly the kind of error I'm worried about making. Definitely going to check out their verification tool before I submit anything.

0 coins

Same experience here. It's caught formatting issues, missing addresses, and collateral description mismatches that I totally would have missed doing it manually.

0 coins

One last tip - double check that your security agreement actually creates a security interest in the collateral you're listing on the UCC-1. I've seen filings where the UCC covered equipment but the security agreement only mentioned inventory. That creates enforceability problems later.

0 coins

Exactly. The UCC-1 is just notice to the world - the security agreement is what actually creates your rights. They need to be consistent or you could have gaps in your security interest.

0 coins

This is why document review is so critical. A lot of lenders rush through the paperwork and miss these alignment issues until there's a default.

0 coins

Sophie Footman

UCC vehicle lien filing rejected - debtor name issues

Need help with a UCC vehicle lien that keeps getting rejected by the state filing office. I'm handling the paperwork for a small auto dealership and we're trying to perfect our security interest on a 2023 Ford F-150 financed for $48,000. The UCC-1 form keeps coming back as rejected due to 'debtor name discrepancy' but I've triple-checked everything against the title and loan docs. The customer's legal name on the title is 'Michael J. Rodriguez' but his driver's license shows 'Mike Rodriguez' and the credit application has 'Michael Rodriguez'. I used the full legal name from the title thinking that was safest but apparently not. This is holding up the whole deal and my manager is breathing down my neck. Has anyone dealt with similar vehicle UCC filing name issues? What's the exact debtor name rule for auto liens?

Update: called the state filing office like someone suggested and you were right! They had the debtor name in their system as 'Michael Joseph Rodriguez' (full middle name spelled out) even though the title just shows 'Michael J. Rodriguez'. Apparently when he first registered the vehicle he gave them his full name but the title printing system abbreviates middle names. Filed a corrected UCC-1 with the full middle name and it went through immediately. Thanks everyone!

0 coins

Great example of why you should always call the filing office when you're stuck. They usually can help pinpoint the exact issue.

0 coins

Filing this away for future reference. Middle name variations are apparently a bigger deal than I thought.

0 coins

Perfect resolution! This thread should be pinned - vehicle UCC name matching issues come up constantly and this shows the exact troubleshooting steps that work. Call the filing office, verify exact name format in their system, then match that exactly on your UCC-1 form.

0 coins

Agreed, super helpful thread. Bookmarking this for my team.

0 coins

Yep, learned more from this discussion than from most of the 'official' UCC guides out there.

0 coins

Ryder Ross

UCC 1-103 supplemental principles - how does this affect my filing strategy?

I'm working on a complex equipment financing deal and keep running into references to UCC 1-103 regarding supplemental principles of law. My lender is telling me this could impact how we structure our security agreement and UCC-1 filing, but I'm not getting clear guidance on the practical implications. The collateral involves specialized manufacturing equipment across multiple states, and there are some contract law issues that might come into play under 1-103. Has anyone dealt with situations where UCC 1-103 supplemental principles actually changed your filing approach or security agreement terms? I need to understand if this is just theoretical or if it has real-world impact on perfection strategy.

Just went through a deal where we had contract law issues that potentially fell under 1-103, but it didn't affect our UCC filing strategy at all. We still filed UCC-1 statements in the normal way. The 1-103 issue was whether certain contract provisions were enforceable under state law, which is a separate question from whether we properly perfected our security interest. I ended up using Certana.ai to cross-check all our documents to make sure the UCC filings matched the security agreement terms perfectly - caught a few small discrepancies that could have been problems later.

0 coins

That's a good point about keeping the documents consistent. How detailed does the UCC-1 collateral description need to be compared to the security agreement?

0 coins

UCC-1 can be broader - 'all equipment' is often fine if that's what your security agreement covers. But they need to be consistent with each other.

0 coins

Bottom line - UCC 1-103 is about what happens when the UCC doesn't address something. For your filing strategy, it's not really relevant. You still need to follow UCC Article 9 for perfection (proper debtor name, collateral description, filing office). The 1-103 stuff is more about contract validity and enforceability issues that your lawyers need to handle in the security agreement itself.

0 coins

Thanks, this has been really helpful. Sounds like I was overthinking the impact on the actual filing process.

0 coins

Yep, keep it simple. Perfect your security interest with proper UCC filings, make sure your security agreement is solid under contract law. 1-103 just reminds us that both matter.

0 coins

Teresa Boyd

How long is a UCC filing good for - equipment lease expiring next month

Quick question about UCC timing that's driving me nuts. We have equipment financing that wraps up in about 6 weeks and I'm trying to figure out when our UCC-1 actually expires. The original filing was done in March 2020, so we're coming up on 5 years. I know there's some kind of continuation requirement but honestly the paperwork from our lender is confusing as hell. Do I need to worry about this before the lease ends or does it automatically terminate when we return the equipment? The financing company hasn't said anything about continuing the filing but I don't want to get stuck with some kind of lien issue if we don't handle this properly.

One thing to watch out for - make sure the equipment description in your lease matches what's on the UCC-1. If there are discrepancies, it could complicate the termination process. I've seen cases where slight differences in serial numbers or model descriptions caused delays.

0 coins

They don't have to be identical but they should be reasonably consistent. Serial numbers are the most important part to get right.

0 coins

This is where that Certana tool someone mentioned earlier might be useful - checking document consistency before problems arise.

0 coins

Bottom line - you're probably fine since your lease ends before the 5-year UCC expiration. Just stay in communication with your lender about the termination process and get everything documented properly when you return the equipment.

0 coins

Thanks everyone for the advice. This has been really helpful. I feel much better about the situation now.

0 coins

Glad we could help. UCC stuff can be confusing but it's usually more straightforward than it seems at first.

0 coins

Prev1...533534535536537...684Next