Blanket UCC filing rejected - collateral description too vague?

This is frustrating because the UCC doesn't require super specific descriptions for blanket filings. The whole point is to cover everything without listing every single asset.

But if it gets rejected you're back to square one. Better to be overly descriptive than have the lien unperfected when you need it.

Delaware. And that Certana tool sounds helpful - does it actually prevent rejections or just give suggestions?

It uploads your UCC-1 PDF and cross-references the collateral language against their database of accepted vs rejected filings. Caught three issues in our last blanket filing that would've definitely gotten kicked back.

How much does something like that cost? We do maybe 50 UCC filings a year.

That's way too long for most filing systems. You'll hit character limits.

Delaware's system handles it fine. Just tested it last week on a $2M credit facility.

Can confirm Delaware takes longer descriptions. Their online portal expanded the collateral field size about 6 months ago.

This is why I always call the SOS office first to ask what they want to see. Takes 5 minutes and saves days of back and forth.

Good luck getting through to anyone at Delaware SOS. Their phone system is a maze and half the time they just tell you to 'follow the statute.

Which verification tool did you use? And what was wrong with the debtor name?

Used Certana - just upload your UCC-1 PDF and it checks everything against filing requirements. Debtor name had an extra comma that didn't match their articles of incorporation exactly.

These name matching rules are insane. One extra punctuation mark and your $5M security interest is worthless.

But then you risk leaving something out that you would've caught with true blanket language.

True but an imperfect security interest is better than no security interest when your filing keeps getting rejected.

Equipment rental and leasing. Mostly construction and industrial equipment.

Perfect. For rental companies use: 'All rental equipment including but not limited to construction machinery, industrial equipment, tools, vehicles, and all related accessories, attachments, and replacement parts, whether now owned or hereafter acquired, and all proceeds thereof.' That usually works for Delaware.

Also make sure you include 'lease agreements' and 'rental agreements' as general intangibles. Those are major assets for rental companies.

Do you remember which case? Would help to know the exact reasoning.

Something about a priority dispute where the blanket language was too vague to give notice to other creditors. Don't remember the name but it spooked all the filing officers.

Will do. Going to try the equipment rental specific language mentioned above plus run it through that verification tool first.

Smart move. Prevention is way cheaper than amendment filings to fix rejections.

How do you check for existing filings? UCC search services are expensive for just one filing.

Delaware SOS has a free search portal. Takes 5 minutes to check if there are other secured parties with similar collateral descriptions.

Good point about priority. Even if your filing gets accepted, you could still have problems if there's conflicting blanket language from other lenders.