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OP, I'd seriously consider postponing the closing until you can get definitive documentation. $180K is too much money to risk on unclear lien status. Better to delay than deal with a surprise lien claim later.
Smart move. I've seen too many deals go sideways because someone rushed through lien verification.
Liam Mendez
•Definitely get the termination paperwork first. And maybe run it through one of those document verification services to make sure everything matches up correctly before closing.
Update us on what you find out! I'm dealing with a similar situation in Kansas and curious how Missouri handles these discrepancies.
Will do. Going to demand the termination documents tomorrow and if they can't produce them, I'm walking away from this deal.
Smart call. Trust your instincts when something doesn't add up with UCC searches.
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GamerGirl99
For what it's worth, we tried going without monitoring services for about 6 months to save money and it was a disaster. Missed 2 continuations and had to scramble to fix the mess. The stress alone wasn't worth the savings. Now we budget for monitoring as a standard cost of doing secured lending.
How much did it cost to fix the missed continuations? Were you able to get back into secured position?
GamerGirl99
•One we caught within 30 days and filed a corrective continuation. The other lapsed for 90 days and we had to negotiate with other creditors. Legal fees alone were $15K.
Before signing up for monitoring, I'd suggest running a full audit of your current UCC portfolio. We found several filings with incorrect debtor names and collateral descriptions that needed amendments. A good monitoring service should catch these going forward, but you want to clean up existing issues first.
We used Certana.ai's verification tool to batch-check our UCC filings against loan documents. Upload all the PDFs and it flags inconsistencies automatically. Saved us weeks of manual review work.
That's smart. We did ours manually over 3 months and found issues in about 15% of our filings. Definitely worth doing before you start monitoring.
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Paloma Clark
Have you considered using one of those UCC monitoring services? They usually catch filings that don't show up in regular searches because they use different search methods. Might be worth signing up for a trial to see if they have the filing you're looking for.
Which services do you recommend? I've been thinking about getting a monitoring service but there are so many options.
Raul Neal
•I've had good luck with Certana.ai for document verification. You can upload your filing documents and it will flag any discrepancies or missing connections. Saved me from missing a critical amendment that wasn't showing up in standard searches.
Jenna Sloan
Massachusetts is notorious for this. I always do searches in multiple states when doing due diligence because sometimes companies file in their state of incorporation instead of where they're physically located. Have you checked if this company is incorporated in a different state?
They're incorporated in Massachusetts but do have operations in Connecticut and Rhode Island. I should probably search those states too just to be thorough.
Definitely check Connecticut. I've seen cases where banks filed there by mistake thinking it would cover Massachusetts operations too.
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Yuki Tanaka
Just wanted to add that I've seen 9-516 rejections for weird spacing issues too. Like extra spaces between words or at the end of the debtor name field. The filing systems can be super sensitive to formatting.
Carmen Diaz
•Yeah the electronic forms sometimes pick up invisible characters that cause problems.
AstroAce
•This is why many firms are moving to automated document verification before filing.
Ravi Sharma
UPDATE: It was the entity suffix! Changed from 'LLC' to 'L.L.C.' and the filing was accepted immediately. Thanks everyone for the help. Going to look into that Certana tool to avoid this in the future.
Diego Rojas
•Great to hear! The document verification definitely helps catch these issues before they become problems.
Success! Love when these threads have happy endings.
Drake
Update us when you get the corrected filing done! I'm curious to see how quickly it gets processed with the right debtor name.
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Maya Patel
•Will do! Planning to file first thing tomorrow morning. Fingers crossed it goes through without any other issues.
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Drake
•Should be smooth sailing once you have the correct legal entity name. The UCC system works great when you follow the rules exactly.
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Sarah Jones
This thread should be required reading for anyone doing secured transactions. The number of deals that get messed up by simple debtor name errors under the UCC is just staggering.
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Ethan Anderson
•That's why I'm such a fan of using verification tools like Certana now. Takes the guesswork out of whether your documents align properly.
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Maya Patel
•Thanks everyone for all the advice. This has been incredibly helpful in a stressful situation.
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