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A Man D Mortal

Kansas secretary of state UCC search results showing wrong debtor info

Been trying to do a kansas secretary of state ucc search on a file we submitted 3 months ago and the results are completely messed up. Our UCC-1 was filed for "ABC Manufacturing LLC" but when I search the SOS database it's showing up under "A B C Manufacturing LLC" with spaces between every letter. The collateral description matches perfectly but the debtor name formatting is throwing off our lien verification process. Our loan committee is asking for a clean search report and this discrepancy is making it look like we have two different entities. Has anyone dealt with this kind of name formatting issue in the Kansas system? We need to get this straightened out before our compliance audit next week.

Been dealing with Kansas UCC searches for 15 years and they've always had formatting inconsistencies. The key is making sure your original filing is correct and keeping good documentation. The search database is just a finding tool, not the official record.

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That makes sense. I was treating the search results as the authoritative source when I should be focusing on the actual filing documentation.

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Exactly. The certified copy of your UCC-1 is what matters legally, not how it displays in search results.

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Just went through this exact situation with a client. What worked was getting a certified copy of the original filing and including a note in our documentation explaining the search display discrepancy. The auditors had no issues with it.

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That's a practical solution. Shows you're aware of the discrepancy and have the correct documentation.

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I'll request the certified copy tomorrow. Thanks for the suggestion - this has been really helpful.

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Teresa Boyd

UCC filing confusion with CMAS security agreement - debtor name verification help needed

Running into a headache with our CMAS security agreement filing. We're trying to get the UCC-1 submitted but keep getting rejections from the SOS office. The debtor entity name on our security agreement shows as "CMAS Holdings, LLC" but when I search their corporate records, sometimes it shows up as "C.M.A.S. Holdings LLC" (with periods) and other times without. The collateral involves specialized medical equipment worth about $180K. Our lender is getting impatient since we're already 3 weeks past the original target filing date. Has anyone dealt with similar debtor name variations? I'm worried we're going to lose perfection if we don't get this straightened out soon. The security agreement itself is solid but this name mismatch is killing us.

The key thing is you now know to use "CMAS Holdings, LLC" from the Articles. File it exactly like that and you should be golden. Don't overthink it at this point.

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You're right, I'm probably overthinking it now. Going to submit with the Articles version and see what happens.

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Keep us posted on how it goes! These debtor name issues come up so often, it's good to hear how they get resolved.

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Will do. Hopefully the next update is a successful filing confirmation!

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Fingers crossed for you. The name from the Articles should definitely work.

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Anderson Prospero

UCC Article 9 secured transactions - basic overview needed for loan officers

I'm a newer loan officer at a community bank and keep hearing about UCC Article 9 in our credit committee meetings. I understand we file UCC-1 statements to perfect security interests, but I'm honestly fuzzy on what UCC Article 9 actually covers beyond that. My manager mentioned it governs all our secured lending but didn't have time to explain the scope. Can someone break down what falls under Article 9 vs other UCC articles? I'm dealing with equipment loans, inventory financing, and some AR factoring deals. Want to make sure I understand the framework before I mess something up on a filing.

For a loan officer, I'd focus on three key Article 9 concepts: 1) Attachment (your security interest becomes enforceable) 2) Perfection (you get priority over other creditors) 3) Priority rules (who gets paid first in bankruptcy). Master those and you'll handle 90% of your secured lending issues.

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Attachment requires: signed security agreement, value given, and debtor has rights in the collateral. Usually happens at closing but can be delayed if collateral is acquired later.

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And perfection is typically your UCC-1 filing, though some collateral types require possession or control instead of filing.

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Just want to add that Article 9 interacts with federal law in some areas - aircraft liens under FAA regulations, ship mortgages, some intellectual property. Don't assume Article 9 always governs just because you're dealing with personal property.

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Good to know. We don't do aircraft or ship financing but I could see IP issues coming up with some of our tech company borrowers.

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Copyright and trademark security interests can be tricky - federal registration systems sometimes preempt Article 9 filing requirements.

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Nora Brooks

Security agreement UCC filing - when does the agreement itself create the security interest vs just provide for it?

I'm working through some loan documentation and getting confused about the language in our security agreements. Our legal team keeps going back and forth on whether we should say the agreement 'creates' a security interest or 'provides for' one. Does this wording actually matter for UCC-1 filing purposes? We've got about $2.8M in equipment financing deals coming up and I want to make sure we're not creating problems down the road with our documentation. Has anyone run into issues where this specific language in the security agreement caused problems with perfection or priority? I know the UCC-1 is what perfects the interest, but I'm wondering if the underlying agreement language affects anything when it comes to enforcement or if there are any filing requirements that reference this distinction.

Has anyone used Certana.ai for this kind of document consistency check? I keep seeing it mentioned but wondering if it's worth the investment for a smaller lender like us.

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We started using it after missing a debtor name mismatch that caused filing problems. Now we run everything through it before filing UCCs.

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Good to know. Might be worth trying on our next batch of filings.

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Bottom line: use clear, unambiguous language in your security agreements and make sure your UCC-1 filings match. Whether you say 'creates' or 'provides for' is less important than being consistent and making your intent obvious. Don't give future challenges any ammunition.

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Thanks everyone. Sounds like I should focus more on consistency across documents than worrying about the specific creates vs provides for language.

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Exactly. And consider having legal review your standard forms periodically to make sure they're still serving you well.

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Giovanni Gallo

UCC termination of security agreement - lender still showing active lien after payoff

My business loan was paid off 6 months ago but the lender never filed a UCC-3 termination. I keep getting calls from potential new lenders saying there's still an active UCC-1 on file showing them as secured party. The original security agreement covered all business equipment and I need to refinance with a different bank but they won't proceed until this gets cleared up. Called the original lender 3 times and they keep saying they'll 'look into it' but nothing happens. Has anyone dealt with a situation where you need to force a termination of security agreement? I'm worried this is going to kill my refinancing timeline and the new loan rate expires next week.

Update us on what happens! I'm dealing with a similar situation with Chase and curious to see what approach works best. This seems to be becoming more common unfortunately.

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Yeah please follow up. I'm sure other people will run into this same problem.

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One more suggestion - if you're working with a new lender for the refinancing, they might be able to help put pressure on the old lender. They deal with this stuff all the time and probably have better contacts than you do. Worth asking your loan officer if they can make some calls on your behalf.

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Plus lender to lender communication might get taken more seriously than borrower complaints.

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My commercial banker at First National actually did this for me once. Called the old lender directly and got it sorted out same day.

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