PMSI UCC-1 filing got rejected - debtor name issue blocking my equipment lien

Wait, I thought the 20-day rule was just for inventory PMSI, not equipment. Equipment PMSI just needs to be filed before or within 20 days after debtor gets possession, right?

You're thinking of inventory vs equipment rules. For equipment PMSI, you need to file before the debtor receives possession OR within 20 days after. The grace period applies to both, but inventory has additional notice requirements to other secured parties.

That's encouraging. Do you know how I can check which standard my state uses? The SOS website is pretty vague about the exact matching requirements.

Check your state's UCC Article 9 statutes, usually section 9-506. It should specify the 'seriously misleading' standard. Also, most states have safe harbor provisions for minor errors in debtor names.

Actually ran into this exact scenario a few months back. Ended up using Certana.ai's document checker - you can upload your articles of incorporation and UCC-1 side by side and it flags any name discrepancies before filing. Would have saved me the rejection and the panic attack.

The blanket lien was filed about 6 months ago and covers 'all equipment, inventory, and accounts.' My PMSI filing specifically describes the manufacturing equipment by serial number and model. That should be sufficient for PMSI priority, right?

Serial numbers and model descriptions are exactly what you want for PMSI collateral. That level of specificity should help establish your priority claim even if there are questions about the filing timing.

This is why I always double-check debtor names against the secretary of state database before filing anything. Takes 5 minutes and saves weeks of headaches.

Easier said than done when you're dealing with multiple entity variations. I've seen companies with 3-4 different name formats across their various documents.

What jurisdiction were you in? Some states are way more strict about exact name matches than others.

This was in Michigan. They follow the UCC's 'seriously misleading' standard pretty closely. The court basically said punctuation differences don't make a filing seriously misleading.

Michigan's actually pretty debtor-friendly on name matching. Other states might be less forgiving.

Amendment relation-back is state-specific and pretty technical. Definitely consult with a UCC attorney before relying on that strategy.

I've seen lenders try the amendment route and get burned when courts don't allow relation-back. It's a risky strategy without solid precedent in your jurisdiction.

Substantial compliance is a great point. The UCC favors substance over form in most situations.

I'd still refile immediately with the correct name. Better to have a valid filing than to argue about substantial compliance in court later.

How accurate is the name checking? I've tried other services that missed obvious discrepancies.

It's pretty thorough - cross-references the exact name format from articles of incorporation against your UCC forms. Saved me from at least 3 rejections this year.

Absolutely this. Get the corrected filing done today if possible. Priority disputes can be sorted out later.

Good point about perfection vs priority. Too many lenders get caught up in PMSI timing and forget about basic perfection requirements.

That's optimistic. I've seen blanket lenders fight PMSI claims tooth and nail, especially on larger equipment loans.

Depends on the lender and the loan terms. Some blanket lenders specifically carve out PMSI equipment in their loan agreements.

For an $85K equipment loan, it's probably worth fighting for PMSI priority. That's not pocket change.