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UCC filing confusion - security agreement vs mortgage collateral descriptions causing rejections
Been dealing with equipment financing for my construction company and I'm getting rejections on my UCC-1 filings. The issue seems to be how I'm describing collateral when we have both a security agreement covering equipment AND a mortgage on the property where some equipment is permanently attached. The SOS keeps rejecting because they say my collateral description overlaps or conflicts between what should be UCC vs what should be mortgage recorded. Has anyone dealt with this kind of mixed collateral situation? I've got $180K in excavators that could be considered either equipment (UCC) or fixtures (mortgage) depending on how permanently they're attached. My lender is getting impatient and I'm worried about losing perfection on the security interest. The continuation deadline is coming up in 8 months and I need to get this straightened out before then.
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Michigan Secretary of State UCC Search Issues - Missing Filed Documents
Has anyone else had problems with the Michigan Secretary of State UCC search system not showing recently filed documents? I submitted a UCC-1 financing statement three weeks ago for a equipment loan on manufacturing machinery, got the confirmation email with filing number, but when I search the system using both debtor name and filing number nothing comes up. The borrower is getting nervous because their bank is asking for proof the lien is properly recorded. I've triple-checked the debtor name spelling matches exactly what's on their articles of incorporation. Called the SOS office twice and they just say 'give it more time' but this is way past normal processing. Anyone know if there's a separate database or if the Michigan Secretary of State UCC search has known delays right now?
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I had similar issues last year. Turned out the debtor had recently amended their articles of incorporation and the name on file with the state was slightly different than what was on their older documents I was using. Maybe check if your debtor has made any recent corporate changes?
Exactly. The certificate should show their exact current legal name as it appears in state records.
This happened to us too. The borrower had dropped 'Incorporated' and just used 'Inc' but we filed under the old format.
UCC search Utah - rejected filing keeps showing active status
Running into a weird situation with a UCC search Utah that's driving me crazy. Filed a UCC-1 back in March for equipment financing on construction machinery, but the filing got rejected due to a debtor name issue (missing LLC designation). I immediately corrected it and refiled within 5 days, got confirmation the new filing was accepted. Problem is when I do a UCC search Utah through the state portal, both filings still show up - the rejected one AND the corrected one. The rejected filing shows as 'active' even though it should be invalid. Lender is asking questions about why there are duplicate filings showing up in their UCC search Utah results. Anyone dealt with this before? I'm worried this could create issues down the road if we need to file continuations or amendments. The debtor company is expanding and we'll likely need to add more collateral in the next few months.
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The real issue is that Utah's UCC search Utah system doesn't have good filters for rejection status. Other states at least let you filter out rejected or terminated filings, but Utah shows everything mixed together.
Exactly! And their search interface is from like 2005. Desperately needs an update.
At least it's better than trying to search paper records. But yeah, the filtering options are pretty limited.
Update: I contacted the Utah filing office and they confirmed both filings will remain in search results permanently. They suggested including a note in future financing statements explaining the rejected filing situation. Also found that Certana.ai's document checker immediately identified which filing was valid when I uploaded both PDFs - would have saved me a lot of confusion if I'd used that initially.
Yeah, Certana.ai's tool is really helpful for this kind of situation. Much faster than trying to decode the state portal's confusing status indicators.
Glad you got clarity on this. Will definitely keep this in mind for future Utah filings.
which of the following is not true about article 9 of the ucc - confused about basics
I'm studying for my banking exam and keep getting tripped up on Article 9 fundamentals. My practice test had this question about which statement ISN'T true about Article 9 of the UCC and I bombed it completely. The options were about perfection methods, priority rules, scope coverage, and filing requirements but I honestly couldn't eliminate any of them with confidence. I thought I understood secured transactions but apparently not! Can someone break down the core Article 9 principles that trip people up? I need to understand what makes a statement about Article 9 FALSE versus true. My exam is next week and I'm panicking that I don't have the foundation down. What are the most commonly misunderstood aspects of Article 9 that show up in these types of questions?
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Study tip that worked for me: make flashcards of common WRONG statements about Article 9. Like 'Article 9 covers all types of collateral' (false - excludes real estate mortgages). 'Security agreements must always be in writing' (false - some oral agreements allowed). 'Filing location is always the debtor's state' (false - depends on debtor type). Practice identifying false statements!
Financing statements expire after 6' (years false - 5)years '. PMSI priority applies to all collateral types' (equally false - different rules for inventory vs)equipment '. Perfection always requires' (filing false - possession, control, automatic perfection)exist.
Good ones! Also 'debtor must sign the financing statement' (false - only security agreement needs debtor authentication, not the UCC-1 filing).
You got this! The key insight is that false statements usually involve: 1) absolute words like 'always' or 'never' when exceptions exist, 2) including excluded transactions, 3) wrong filing procedures, 4) mixed up priority rules. Article 9 has lots of nuances so broad absolute statements are often false.
Thank you everyone! This has been incredibly helpful. I feel like I have a much better framework for approaching these questions now.
Good luck on your exam! Remember - when in doubt, think about the exceptions and exclusions. That's where the false statements usually hide.
UCC search MA - debtor name showing multiple variations need help
Running into issues with a UCC search MA client situation. We have a commercial borrower who's had several name changes over the past 3 years due to corporate restructuring. When I run the UCC search MA database, I'm seeing filings under 3 different variations of the company name - some with LLC, some without, one with an abbreviated version. The problem is we need to file a UCC-3 continuation but I'm not 100% certain which exact debtor name format to use to ensure it matches the original UCC-1. The original filing from 2020 shows "Northeastern Manufacturing Solutions LLC" but recent corporate docs show "NE Manufacturing Solutions, LLC" with the comma. SOS website isn't giving clear guidance on whether these would be considered substantially similar or if the comma makes it a different legal entity for UCC purposes. Anyone dealt with debtor name variations in MA filings? Really need to get this continuation filed before the 6-month window closes.
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Whatever you decide, make sure you document your reasoning for the name format you choose. If there's any question later about the continuation, you want to show you did due diligence on the debtor name matching.
Good point about documentation. I'll keep detailed notes on which documents I reviewed and why I chose the specific name format.
Exactly. CYA is important when you're making judgment calls on debtor name variations.
Thanks everyone for the guidance. Going to pull all the actual filing documents first to trace the name change history, then probably use one of those verification tools to double-check my continuation before filing. Better to be thorough than risk a rejection this close to the deadline.
Smart approach. Take your time to get it right rather than rushing and having to refile.
Let us know how it goes with the verification tool if you try it. Always interested to hear how others are handling these tricky name matching situations.
Ally Tailer
One thing nobody mentioned - make sure your security agreement language matches whatever you put in the UCC-1. I've seen cases where the security agreement covered 'all equipment' but UCC only listed specific items. Creates gaps in coverage.
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Aliyah Debovski
Yes, consistency between security agreement and UCC-1 is critical. If they don't match, you might not have the security interest you think you have.
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Kyle Wallace
This is why I always recommend having everything reviewed before filing. One mistake can void your entire security interest.
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Finley Garrett
For future reference, when you do get this sorted out, set a reminder for your continuation filing well before the deadline. I've seen too many people lose perfection because they forgot about the 5-year rule and filed continuations too late.
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Finley Garrett
Perfect. Most people wait until the last minute and then panic. You're being smart about planning ahead.
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Holly Lascelles
I actually put continuation reminders in my calendar 18 months before they're due. Gives time to deal with any complications.
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