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 :)
Join the conversation
Join the conversation
Sorry this happened to you. UCC Article 9 priority rules can be brutal when you don't see them coming. At least you'll know to watch for PMSI issues on future deals.
Thanks. Definitely learned my lesson about assuming first-to-file means first-in-right under these priority rules.
Freya Ross
One more thing to check - make sure their UCC-1 actually describes the equipment correctly for PMSI priority. UCC Article 9 priority rules require the collateral description to be specific enough to identify the purchase money collateral.
Yeah, sounds like they knew exactly what they were doing with the PMSI priority claim.
Sergio Neal
•Professional equipment lenders usually know UCC Article 9 priority rules inside and out. They have to in order to protect their interests.
Join the conversation
Justin Chang
For what it's worth, this comma thing is incredibly common. The state systems can't distinguish between intentional punctuation and typos so they reject anything that doesn't match exactly. Once you refile with the correct name it should process without any issues.
Thanks for the reassurance! I was worried there might be some deeper issue with the filing.
Nah, punctuation mismatches are usually the easiest fixes. Way better than having collateral description problems.
Grace Thomas
UPDATE: Just wanted to follow up - refiled the UCC-1 with the exact registered name including the comma and it was accepted within 4 hours! Thanks everyone for the quick help. Definitely going to start using that document verification tool someone mentioned to catch these issues upfront.
Great to hear! The verification tool will definitely save you time on future filings.
Perfect timing too - got it resolved well before the weekend. Your compliance team must be relieved!
Join the conversation
Make sure you're not including any extra spaces before or after the name. I've seen that cause rejections too. Also double-check that you're using the right entity type designation - sometimes 'LLC' vs 'L.L.C.' matters.
Exactly! Every character has to be perfect or the system throws a fit.
I always paste into a plain text editor first to catch invisible characters and extra spaces.
Update us when you figure it out! I'm dealing with a similar Colorado filing issue right now and could use the solution.
AstroAce
•Will do! Going to try the document verification approach and get the actual Articles of Organization first.
Thanks! Hoping it's something simple for both of us.
Join the conversation
Ethan Davis
Update: Just tried Certana.ai's document checker that someone mentioned earlier. Uploaded my original UCC-1 and the continuation UCC-3 - turns out there was a slight formatting difference in how we wrote the secured party address. The original had 'Suite 200' and our continuation had 'Ste 200'. Probably enough to cause the linking issue even though both versions got accepted by Delaware's system.
Yuki Tanaka
•Wow, 'Suite' vs 'Ste' causing filing problems? That seems overly strict but good to know for future filings.
Ethan Davis
•Right? You'd think the system would be smart enough to handle common abbreviations, but apparently not. Going to file a corrective UCC-3 to fix the address formatting.
Carmen Ortiz
This thread has been super helpful. I've got a Delaware continuation coming up next month and now I know to be extra careful about exact formatting matches. Going to double-check everything before filing.
Emma Wilson
•Definitely worth the extra time to verify everything matches exactly. These formatting issues can create real problems for perfection.
Same here. Never realized how picky the system could be about minor formatting differences.
Aisha Hussain
The UCC definition of material really comes down to providing enough information for a searcher to reasonably identify what collateral is covered without being so specific that you exclude items. Think of it from a searcher's perspective - if they were looking for liens on manufacturing equipment, would your description give them enough material information to understand what's covered? That's the test most filing offices seem to apply.
0 coins
Oliver Fischer
•That's a great way to think about it - from the searcher's perspective. Makes the material definition requirement much clearer.
0 coins
Ethan Clark
•Exactly right. The whole point of the material information requirement is to help searchers understand what they're looking at. Good framework for evaluating descriptions.
0 coins
StarStrider
Just wanted to add that timing matters too with these rejections. If you're close to a loan closing deadline, consider filing a broader description first to get something on record, then file a UCC-3 amendment with more specific material details once you have time to get it right. At least you'll have priority from the initial filing date.
0 coins
Oliver Fischer
•Smart strategy for deadline pressure situations. Better to have something filed than miss the closing because of description disputes.
0 coins
Yuki Sato
•This is good tactical advice. We've done this when facing tight deadlines - get the priority date secured then perfect the material details later.
0 coins