How many pages is the UCC filing supposed to be - got rejected for length

Filing in Texas. The portal didn't give me any warnings when I entered the info, but I haven't submitted yet. Should I test with a shorter version first?

Texas SOS system is pretty good about flagging issues before submission. If it accepted your entry without errors, you're probably fine on length. The bigger concern is making sure your collateral description is specific enough to perfect your security interest.

This is so true. I've seen lenders lose their security interest because they tried to keep the collateral description short and it didn't adequately describe what they were actually securing.

That's exactly what I was worried about. Better to err on the side of being too detailed than too vague, right?

Absolutely. Courts generally favor detailed descriptions over generic ones when there are perfection disputes.

Never heard of that but sounds useful. Does it catch the formatting issues that cause rejections?

Yeah, it flags inconsistencies between your supporting docs and the UCC filing. Really helpful for complex filings where you have multiple collateral types.

I've got serial numbers for the major equipment pieces, but the inventory description is more general. Is that going to be a problem?

That's typically fine. Inventory descriptions can be broader as long as they clearly indicate what type of inventory you're securing. Something like 'all inventory now owned or hereafter acquired' is standard.

Just make sure you're consistent with how you describe things across all your loan documents. Mismatches between the credit agreement and UCC filing can create problems.

It does seem overwhelming at first, but once you understand the basic concepts it gets easier. The key is taking time to understand what you're actually trying to accomplish with the filing.

I guess. Just seems like there should be better guidance from the state offices about what they actually want.

Good point about the debtor name. I double-checked against their articles of incorporation but I should probably verify with their most recent filing too.

Definitely. And make sure you're not including extra punctuation or abbreviations that aren't in the official name. The SOS systems are picky about exact matches.

That's reassuring. I was more worried about some hidden page limit that would cause an automatic rejection.

The automated systems are usually pretty good about flagging obvious issues upfront. It's the substantive legal adequacy that's harder to check automatically.

Agreed. Better to be thorough than to have perfection issues later because you cut corners on the collateral description.

Thanks, that makes me feel better about keeping the detailed description.

That sounds really helpful for complex filings. Does it work with all state formats?

It focuses on the document consistency checking rather than state-specific formatting, so it should work regardless of which state you're filing in.

You're absolutely right. I'd rather deal with a rejection and resubmission than have perfection issues down the road.

Exactly. Take the time to get it right the first time, even if that means a longer filing.

This is why I always recommend having someone else review complex UCC filings before submission. Fresh eyes catch things you miss.

You're probably right. I guess I got paranoid after reading about all the different ways UCC filings can get rejected.

The rejection rate is actually pretty low if you follow the basic requirements. Most issues are easily avoidable with careful preparation.