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Emma Thompson

UCC-1 rejected - they say a financing statement is an agreement that creates or provides for a security interest but mine shows something different

So I'm dealing with this really frustrating situation where my UCC-1 got rejected by the SOS office. The rejection notice says 'a financing statement is an agreement that creates or provides for a security interest' but when I look at my filing, it clearly shows the loan agreement and security agreement as separate documents. I've been working on this commercial equipment loan for weeks and now I'm stuck. Basically what happened is we have a $340K equipment financing deal where the borrower is purchasing manufacturing equipment. I prepared what I thought was a standard UCC-1 filing but apparently there's some confusion about whether the financing statement itself creates the security interest or just perfects it. The borrower's name matches exactly between the loan docs and UCC-1, and the collateral description covers 'all equipment, machinery, and fixtures now owned or hereafter acquired'. Has anyone else run into this kind of rejection? I'm wondering if this is a new interpretation by our state's filing office or if I'm missing something fundamental about how financing statements work. The security agreement clearly creates the lien, and I thought the UCC-1 just gives public notice of it. Really need to get this sorted because we're supposed to fund next week.

Liam Sullivan

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This thread reminded me to run my current deals through Certana.ai before filing. Caught a debtor name issue that would have definitely caused a rejection. The tool flagged that my UCC-1 had 'ABC Manufacturing Inc.' but the security agreement showed 'ABC Manufacturing, Inc.' - just a comma difference but apparently that matters.

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Amara Okafor

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Those tiny punctuation differences are the worst. How is anyone supposed to keep track of whether the legal name has a comma or not?

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That's exactly the kind of thing that drives me nuts about UCC filings. The system is so picky about details that don't really matter for identifying the debtor.

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Just to add some closure here - I've been doing UCC filings for 15 years and this rejection reason is definitely not standard. The financing statement perfects security interests, it doesn't create them. Sounds like you handled it perfectly by calling and getting clarification. Good reminder that filing offices make mistakes too.

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Thanks for the perspective from someone with experience. It's reassuring to know that weird rejections like this aren't normal.

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Dylan Cooper

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Agreed. Sometimes you need a veteran to confirm that you're not going crazy when you get a rejection that doesn't make sense.

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Selena Bautista

UCC lien creditor rights after debtor default - need urgent advice

My company extended a $280K equipment loan secured by manufacturing equipment last September. We filed our UCC-1 properly through the state portal and got confirmation. The debtor defaulted three weeks ago and we're trying to exercise our rights as the secured creditor. Problem is, there's apparently another UCC lien creditor who claims they have priority over the same equipment. Their filing date shows two months before ours but something seems off about their debtor name - it's slightly different from what's on the incorporation docs. As the UCC lien creditor in second position, what are my options here? Can I challenge their priority based on the name discrepancy? The equipment is worth about $320K so there should be enough for both liens but I want to make sure I understand my rights before the debtor files bankruptcy. Anyone dealt with competing UCC lien creditor situations like this?

This whole thread is making me realize I should double-check all my UCC filings. Been doing this for years but name discrepancies are sneaky. Might be worth running everything through one of these document checkers just to be sure.

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Ellie Perry

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Smart move. I found issues with three of my older filings when I did a portfolio review. Some had minor name variations that could have caused problems down the road.

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Yeah that's my fear. Better to catch problems now while there's still time to fix them with amendments.

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Monique Byrd

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Update us on how this turns out! Priority disputes are always educational for the rest of us UCC lien creditors. Hope the name discrepancy works in your favor.

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Will do. Meeting with my attorney tomorrow to review all the documents and decide on next steps. Thanks everyone for the insights.

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Landon Morgan

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Good luck! These priority fights can get ugly but sounds like you might have a solid argument on the debtor name issue.

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Hannah White

Texas UCC statement service fee - unexpected charges on continuation filing

Been dealing with a messy situation regarding service fees on my Texas UCC continuation. Filed a UCC-3 continuation statement last month through the SOS portal and got hit with what seems like double charges. The base filing fee was expected but there's an additional 'statement service fee' that wasn't clearly disclosed upfront. My lender is asking questions about the total cost since it's significantly higher than what we budgeted for this continuation cycle. Has anyone else run into unexpected Texas UCC statement service fees recently? The documentation on the SOS website isn't super clear about when these additional fees apply. Need to figure out if this is standard or if there was some kind of error in the fee calculation. The UCC-1 was originally filed in 2020 and this is my first continuation, so maybe there's something I'm missing about the fee structure for ongoing filings.

Just wanted to follow up on this because I disputed a similar service fee with Texas last month and actually got it reversed. If you can document that the service wasn't explicitly requested and wasn't clearly disclosed during the filing process, they'll sometimes refund the charge. It's worth filing a dispute if the fee was significant. The worst they can do is deny it but I've had success getting these kinds of charges removed when they weren't properly disclosed upfront.

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Exactly what you need - the confirmation emails and any screenshots showing the fee selection process. Also helpful if you can show that the service wasn't necessary for your filing type.

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Kaiya Rivera

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Good to know they're actually responsive to disputes. I always assumed those fees were final once charged. Might be worth challenging some of the questionable charges I've paid over the years.

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This whole discussion makes me glad I'm not dealing with Texas filings anymore. Moved my business to Delaware last year and their UCC process is so much more straightforward. No hidden service fees, clear pricing upfront, and the portal actually works properly. Sometimes it's worth considering whether the headache of dealing with complicated state filing systems is worth it versus restructuring in a more business-friendly jurisdiction.

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Noah Irving

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Delaware is definitely the gold standard for business filings but not always practical depending on your business structure and collateral location.

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True, collateral location limits your options. But for businesses with flexibility in where they file, it's worth considering the total cost of compliance including all these surprise fees.

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Katherine Harris

UCC filing requirements causing my loan officer nightmares - what am I missing?

Been doing commercial lending for 8 years and thought I had UCC filing requirements down pat, but lately I'm getting more rejections from our state filing office than acceptances. Last week alone had 3 UCC-1s bounced back - one for "insufficient debtor name information" even though I used the exact legal entity name from the Secretary of State records, another rejected because apparently my collateral description was "too broad" (I literally copied language from a template our compliance department approved), and a third one that got kicked back for some formatting issue I can't even identify. My loan committee is starting to question whether I understand basic UCC filing requirements, which is honestly embarrassing since I've been handling secured transactions since 2017. The worst part is we've got $2.3M in equipment financing deals sitting in limbo because I can't get clean liens filed. Our borrowers are getting antsy and one already threatened to take their business elsewhere if we can't close by month-end. I know the basics - UCC-1 for initial filings, proper debtor names, adequate collateral descriptions, correct filing fees. But clearly there's something about the current requirements I'm missing. Are there new rules I haven't caught up on? Different standards for debtor name matching? I'm starting to wonder if there's some systematic issue with how I'm preparing these documents that I'm just not seeing.

Anna Stewart

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Quick question - are you handling continuation filings as well or just initial UCC-1s? Because if your initial filings have name or description issues, that's going to create problems down the road when you need to file continuations or amendments.

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Layla Sanders

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Exactly. Better to solve the consistency issues now rather than dealing with mismatched filings when you need to continue or amend. I've seen situations where lenders couldn't properly continue because the original filing had name discrepancies.

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Ezra Collins

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This is another reason why I like using that document verification tool - it helps ensure consistency across all your filings from the start, so you don't run into continuation problems later.

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Thanks for posting this - makes me feel better that I'm not the only one struggling with increased rejection rates. Thought maybe I was losing my touch after 12 years of doing this stuff. Good to know it's a broader trend and not just my incompetence showing.

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Definitely not just you! This thread has been really helpful for confirming that others are seeing the same issues. At least now I know what areas to focus on improving.

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Kaylee Cook

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Same here. I was starting to second-guess everything I knew about UCC requirements. Good to know the standards really have gotten stricter and it's not just me missing something obvious.

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Sophia Bennett

UCC lien notice of assignment - do I need to file UCC-3 when original lender sells my equipment loan?

My equipment financing company just sent me a notice that they're assigning my loan (and the UCC lien) to another lender. The original UCC-1 was filed 2 years ago when I bought my packaging machinery. Now I'm getting this formal notice of assignment but I'm confused about whether anything needs to be filed with the state. The new lender says they'll handle everything but I want to make sure the lien is properly transferred and my equipment title stays clear. Do I need to file a UCC-3 assignment or does the notice of assignment automatically update the public record? I'm in manufacturing and can't afford any lien complications that might affect my credit line renewals.

Lola Perez

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Had this happen with my restaurant equipment financing. The notice of assignment came but no UCC-3 was ever filed. Caused major problems when I tried to get an SBA loan 8 months later because the lien records were inconsistent.

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How did you eventually resolve it? I'm definitely going to stay on top of this now.

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Lola Perez

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Had to get both the old and new lender involved to sort out the documentation. The new lender finally filed the assignment but it delayed my SBA approval by 6 weeks. Could have been avoided if I'd checked sooner.

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Bottom line: the notice of assignment transfers the debt legally but doesn't update public UCC records automatically. New lender should file UCC-3 assignment within reasonable time. You should verify it gets done because it affects future financing and lien releases. Don't assume it happens automatically.

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Perfect summary, thank you. I'm going to contact the new lender tomorrow to make sure they understand they need to file the UCC-3 assignment and ask for confirmation when it's done.

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Riya Sharma

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Smart move. Most lenders are good about it when you ask directly, they just sometimes forget in the shuffle of processing loan transfers.

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