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
This is why proper due diligence before filing is so important. Always run a UCC search first to see what's already out there. But since you're already in this situation, you need to trace both filings back to their source and get the incorrect one fixed.
Lesson learned for sure. Just trying to clean up the mess now so we can move forward with our refinancing.
Totally understand. Once you identify which filing is wrong, the correction process is usually pretty straightforward.
Logan Chiang
Been there! The key is getting certified copies of both filings and then working with your attorney to determine the proper course of action. Might need UCC-3 corrections, might need terminations, depends on the specific situation. But don't let this drag on - lenders hate unclear collateral situations.
Already working with our attorney but wanted to get some practical input from people who've been through this before. Really appreciate all the advice here.
Logan Chiang
•Smart approach. The more you understand about the situation before meeting with your attorney, the more efficient and cost-effective the resolution will be.
Join the conversation
Just a thought - have you confirmed that Mountain Peak Construction LLC is actually the borrowing entity? Sometimes the loan documents reference a parent company but the actual borrower is a subsidiary with a slightly different name.
NebulaNinja
•That's a really good point. Let me double-check the loan agreement to make sure I have the right entity. Could be an easy mistake to make.
Yeah I've seen that before. The sales contract might be with the main company but financing goes through a subsidiary or holding company.
Ravi Sharma
For what it's worth, your blanket lien collateral description looks solid. "All equipment, machinery, tools, and fixtures now owned or hereafter acquired" covers pretty much everything for a construction company without being too vague. The name is definitely your issue here.
Agreed. That's pretty standard language for equipment financing blanket liens. Should be no issues with the collateral schedule.
Omar Zaki
•I use almost identical wording for construction company equipment loans. Never had a rejection on the collateral side.
Join the conversation
Update us when you refile! I'm curious if the comma fix does the trick or if there's some other formatting issue lurking.
Miguel Diaz
•Will do - planning to refile tomorrow morning with the exact punctuation from the Delaware search.
Diego Chavez
•Fingers crossed for you! These filing rejections are the worst when you're on a tight deadline.
NeonNebula
One last tip - if you're still having issues after fixing the comma, check if there are any special characters or spacing issues. Sometimes what looks like a regular space is actually a different type of character that causes problems.
NeonNebula
•Yeah I learned that the hard way with a filing that had some weird character encoding issue. Looked fine visually but kept getting rejected.
Sean Kelly
•Technology is supposed to make this easier but somehow it just creates new ways for things to go wrong.
Join the conversation
Olivia Clark
One more thing - keep copies of everything including confirmation emails and filing receipts. Missouri's good about providing confirmation but always good to have your own records.
Olivia Clark
•Smart. Documentation saves headaches later, especially on larger loans like yours.
I actually scan everything to cloud storage as backup. Never know when you'll need to reference an old filing.
Thanks for posting this - I've got a similar Missouri situation coming up next year and this thread has been really helpful for planning ahead.
Glad it's useful! This community is great for figuring out these state-specific quirks.
Agree - way better than trying to decode the official guidance documents on my own.
Ryder Everingham
The key question is whether your collateral description creates genuine ambiguity about what property is secured. If 'all inventory and equipment' could reasonably include restaurant fixtures and food inventory, you might not need reformation at all. Courts look at commercial reasonableness, not technical perfection.
0 coins
Ryder Everingham
•Or the attorney is fishing for a settlement. Without seeing the actual security agreement and UCC filing, it's hard to judge whether their challenge has merit.
0 coins
Lilly Curtis
•honestly this whole situation sounds like it could have been avoided with better document review before filing
0 coins
Leo Simmons
Update us on what happens! I'm curious whether reformation will work for UCC collateral descriptions. This could set important precedent for other lenders dealing with similar issues.
0 coins
Ashley Simian
•Will do. Meeting with our UCC attorney next week to discuss options. Hoping we can find a solution that doesn't cost more than the loan balance.
0 coins
Lindsey Fry
•good luck with it, these collateral description disputes are such a headache
0 coins