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This thread is making me never want to do deals involving Colorado entities! Sounds like their UCC system is a complete mess compared to other states.
Colorado definitely isn't the worst but it's not great either. At least they have electronic filing now.
Small consolation when the search results are unreliable!
For what it's worth, I've found that Colorado's UCC search issues are usually resolved by being really methodical about name variations and pulling all the actual documents rather than relying on the search summaries. It's more work but you'll get definitive answers about what's actually terminated vs. still active.
I totally get the frustration. Colorado's system definitely makes routine searches more complicated than they should be.
Ezra Beard
•This is exactly why I always pad my due diligence timeline when Colorado entities are involved. Their UCC database quirks are predictable at this point.
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Ruby Knight
I bet it's the debtor name issue like someone mentioned earlier. We had a client where the UCC-1 sat in limbo for a week because we used their DBA name instead of their legal entity name. Easy fix but caused a lot of stress.
Owen Jenkins
•That's exactly what I'm worried about. Going to run it through that document checker tool before I call the SOS office.
Julia Hall
•Smart move - better to know what the issue is before you call so you can fix it right away.
Keep us posted on the resolution! This thread will be helpful for anyone else who runs into missing UCC IDs. Hopefully it's just a system delay and not a real filing issue.
Owen Jenkins
•UPDATE: Used Certana to check the documents and found the debtor name issue - we had 'LLC' instead of 'L.L.C.' with periods. Filed an amendment this morning and got the UCC ID within 2 hours. Crisis averted!
Lilah Brooks
•Awesome! Glad you got it figured out. Those little punctuation differences can be such a pain.
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Miguel Ortiz
Update us when you figure it out! Always curious what the actual issue turns out to be in these situations.
Fingers crossed it's something simple. These deadline pressure situations are the worst.
QuantumQuest
•Betting it's a hidden character issue. Happens more often than people realize.
FOUND IT! Used the search results method and discovered there was indeed a comma - 'Morrison Industries, LLC' with the comma. Filed successfully! Thanks everyone, especially for the search results tip. Also going to check out that Certana.ai tool for future reference since this was way too stressful.
Yara Haddad
•The comma strikes again! Classic UCC filing gotcha. Congrats on getting it sorted before the deadline.
This thread should be required reading for anyone doing UCC continuations. So many good troubleshooting tips.
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Your situation sounds standard. Bank issues LC to back your lease, takes security interest in business assets or LC proceeds to cover their exposure, files UCC-1 to perfect that security interest. Pretty routine commercial lending practice.
Laila Prince
•That's fair. Commercial lending involves a lot of protective filings that seem redundant but serve important legal purposes.
Isabel Vega
•At least UCC filings are public record so you can see exactly what security interests are filed against your business.
Bottom line: if your bank says they need the UCC filing for the LC arrangement, they probably do. It's about protecting their position as a secured creditor. Just make sure all the paperwork aligns and you should be good to proceed with your equipment lease.
Thanks everyone. Sounds like this is normal and I just need to get the filing done correctly. Appreciate all the insights.
TommyKapitz
•Good luck with the equipment lease! Once you get through the paperwork maze, the actual business operations are much more straightforward.
Yara Assad
One more tip - if you find existing liens, don't assume they're all valid or properly perfected. I've seen UCC-1 filings with incomplete collateral descriptions or incorrect debtor information that wouldn't hold up in court. But obviously get legal advice before relying on defective filings.
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Liam Murphy
•Interesting point. So even if there are existing filings, they might not actually create valid liens?
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Yara Assad
•Right, but don't count on it. Treat them as valid unless your attorney tells you otherwise. Just something to be aware of for your risk assessment.
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Olivia Clark
Update us on what you find! Always curious about how these searches turn out. Hopefully your borrower was being straight with you about no existing liens.
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Liam Murphy
•Will do. Thanks everyone for all the guidance. This gives me a solid roadmap for the search process.
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Javier Morales
•Good luck! Thorough lien searches are one of those things that seem overwhelming at first but become routine once you develop a system.
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