New Mexico UCC-1 form collateral description issues causing rejections

That makes sense about being more specific. We've been using pretty generic language like 'all construction and earthmoving equipment.' Sounds like we need to break it down more by equipment type.

Yeah the generic descriptions definitely don't work anymore in most states. New Mexico wants to see that you actually know what collateral you're securing.

Good point about the debtor name matching. We've had issues with that in other states where the business was registered slightly differently than how they sign documents.

The debtor name thing is huge. Even something like 'Inc.' vs 'Incorporated' can cause a rejection in some states.

Wait, do they really reject for Inc vs Incorporated? That seems excessive even for government bureaucracy.

That sounds useful. How does it work exactly? Do you just upload the PDFs and it compares everything automatically?

Exactly - just upload your UCC-1 and the business charter or articles of incorporation. The system cross-checks the debtor names, identifies inconsistencies, and flags potential collateral description problems. Takes like 30 seconds and prevents those costly rejection cycles.

Interesting. I might have to check that out. We've been manually comparing documents which is time-consuming and error-prone.

I understand the frustration but including equipment years actually does help with identification, especially for used equipment financing where the age affects value significantly.

Maybe for cars but construction equipment can run for decades. A 1995 excavator might be worth more than a 2010 model depending on maintenance and usage.

True but from a legal standpoint, the more specific your collateral description, the better your perfected security interest. Better to over-describe than under-describe.

I think we're using the current version but I should double-check. Which fields did they make mandatory that weren't before?

The secured party address fields became mandatory, and they're more strict about the collateral description formatting. Also the debtor address has to match their business registration exactly.

I hadn't thought of calling them directly. Do they actually answer the phone and help with these kinds of questions?

Hit or miss honestly. But when you do reach someone knowledgeable, they can save you weeks of rejection cycles. Worth trying before you file another batch.

Good luck getting through to anyone helpful at the SOS office. I've been on hold for 45 minutes before just to get transferred to someone who couldn't answer basic UCC questions.

How accurate is the automated checking? I'm always worried about relying too much on technology for legal document review.

It's been very accurate for us. Obviously you still need to review everything yourself, but it catches the obvious stuff like name mismatches and incomplete collateral descriptions that cause most rejections.

That's much more specific than what we've been using. I think our language has been too broad and that's triggering the rejections.

The 'now owned or hereafter acquired' language is crucial for equipment financing since companies are constantly buying new machines.

Just make sure that language is actually enforceable under your loan agreement. Some lenders have specific requirements about after-acquired property clauses.

That makes sense. Technology cutting both ways - easier to file electronically but also easier for them to catch minor errors automatically.

The electronic system is definitely more consistent but also less forgiving. No more relying on helpful clerks to overlook minor formatting issues.

Good point. We probably need to be more careful about verifying the exact registered name before preparing the UCC-1.

This is where document checking tools really help. Manual name verification is tedious and error-prone, especially when you're doing volume filings.

The New Mexico business search is free online, so there's really no excuse for name mismatches. Just takes a few extra minutes to verify.