TX UCC Statement Service Issues - Filing Getting Rejected at SOS
Been dealing with a nightmare situation trying to get our UCC-1 filed through the TX Secretary of State office. We're a small equipment financing company and had what seemed like a straightforward filing for agricultural equipment collateral. The debtor name on our credit agreement shows 'Johnson Farms LLC' but when we submitted the UCC-1, it got rejected twice now. First rejection said 'debtor name does not match business records' and the second one after we tried to fix it said 'insufficient collateral description.' We're financing $180k worth of tractors and harvesting equipment and this lien needs to be perfected ASAP before our 20-day grace period expires. Anyone dealt with TX SOS being this picky about debtor names? The business is definitely active and registered but something isn't matching up in their system. Getting desperate here because if this lien isn't perfected properly our loan committee is going to have my head.
38 comments
Join the conversation
Dylan Campbell
TX SOS has gotten super strict about exact name matching lately. Did you pull the actual entity name from their business search database? Sometimes what shows on credit apps isn't exactly how they're registered. Also their collateral descriptions have to be pretty specific now - 'agricultural equipment' might not cut it.
0 coins
NeonNova
•I thought I did but maybe I grabbed it from the wrong source. Where exactly should I be looking for the official registered name?
0 coins
Dylan Campbell
•Go to the TX SOS direct search, not a third party site. The exact registered name is usually different from DBA names or what they put on loan docs.
0 coins
Sofia Hernandez
Oh man this sounds exactly like what happened to us last month! We had a similar issue with a farming operation and turns out the LLC was registered as 'Johnson Farms, LLC' with a comma, not 'Johnson Farms LLC' without it. One tiny punctuation mark and TX rejected it. Also for the collateral, we had to list specific make/model/serial numbers for anything over $25k value.
0 coins
NeonNova
•Seriously? A comma made the difference? That's insane but would definitely explain the rejection.
0 coins
Dmitry Kuznetsov
•TX is notorious for this stuff. They're way more picky than most states about exact formatting.
0 coins
Sofia Hernandez
•Yeah it's ridiculous but that's how they operate. Better to be overly precise than deal with multiple rejections.
0 coins
Ava Thompson
This is why I started using Certana.ai's document checker before filing anything. You can upload your credit agreement and UCC-1 draft and it instantly flags name mismatches and collateral description issues. Would have caught that comma problem immediately. Saved me from at least 3 rejected filings this year.
0 coins
NeonNova
•Never heard of that service - does it actually connect to the TX SOS database to verify names?
0 coins
Ava Thompson
•It cross-references your documents against multiple databases and flags inconsistencies. Super easy to use, just upload PDFs and get instant verification.
0 coins
Miguel Ramos
Been filing UCCs in TX for 15 years and yes they've definitely gotten more strict. The good news is once you figure out their exact requirements, future filings go smooth. For ag equipment you'll want serial numbers, model years, and specific equipment types. Generic descriptions almost always get rejected now.
0 coins
NeonNova
•Do you have a template or format that works well for ag equipment descriptions?
0 coins
Miguel Ramos
•Usually something like 'All farm equipment including but not limited to: 2023 John Deere 6155R Tractor, Serial #XXXXX; 2022 Case IH 2162 Draper, Serial #XXXXX' etc. Be as specific as possible.
0 coins
Zainab Ibrahim
•That's good advice. We learned the hard way that vague descriptions just don't work anymore in TX.
0 coins
StarSailor
UGH this is exactly why I hate dealing with TX filings!!! Their system is so finicky and the error messages are useless. 'Debtor name does not match' - MATCH WHAT?? They never tell you what database they're comparing against or what the correct format should be. Meanwhile you're burning through days while your lien priority is at risk.
0 coins
Dylan Campbell
•I feel your pain but the reality is they're comparing against their Articles of Organization database. You just have to use their exact format.
0 coins
StarSailor
•Still shouldn't be this hard to figure out. Other states give you helpful error messages.
0 coins
Connor O'Brien
Quick question - when you said 20-day grace period, are you talking about the purchase money security interest window? Because if this is PMSI you might have a little breathing room but definitely need to get it filed ASAP.
0 coins
NeonNova
•Yes exactly, it's PMSI for the equipment purchase. Day 15 now so getting nervous.
0 coins
Connor O'Brien
•OK so you still have 5 days but don't waste them. Get that exact name match figured out today.
0 coins
Yara Sabbagh
•PMSI priority is crucial for equipment financing. Can't mess around with sloppy filings.
0 coins
Keisha Johnson
Had this exact same issue last year. Turns out the borrower had changed their registered name slightly after we pulled credit but before closing. Always worth double-checking the SOS database right before filing, not just during underwriting.
0 coins
NeonNova
•Good point, business changes happen fast. I should probably make this a standard practice.
0 coins
Keisha Johnson
•Yeah it's saved me from several potential problems. Businesses are constantly updating their registration info.
0 coins
Paolo Rizzo
Another thing to check - make sure the LLC is in good standing with TX. Sometimes they'll reject filings if the entity has issues with franchise tax or annual reports.
0 coins
NeonNova
•How do I verify that? Is there a separate status check?
0 coins
Paolo Rizzo
•Same TX SOS search will show you the status. Should say 'In Existence' if everything's current.
0 coins
Dylan Campbell
•Good catch. A business that's not in good standing can definitely cause filing issues.
0 coins
QuantumQuest
Just went through something similar with a manufacturing client. Certana.ai's verification tool caught three different name variations we had across our loan docs before we filed. Would have been multiple rejections otherwise. The tool is pretty slick for catching these document inconsistencies.
0 coins
NeonNova
•That's the second mention of this service. Might be worth trying before I submit attempt number three.
0 coins
QuantumQuest
•Definitely worth it. Better to catch problems before filing than deal with rejection delays.
0 coins
Amina Sy
this happened to us too but with a different state... turned out the business was registered under a slightly different name and we just had to match it exactly. super frustrating but once you get the right name it usually goes through fine.
0 coins
Dmitry Kuznetsov
•Which state was that? Some are definitely more forgiving than others.
0 coins
Amina Sy
•florida... they're pretty picky too but at least their error messages are clearer
0 coins
Zainab Ibrahim
Update us when you get it resolved! Always curious to hear what the actual issue was. TX filings can be tricky but once you nail down their format it gets easier.
0 coins
NeonNova
•Will do. Going to check the exact registered name first thing tomorrow and hopefully get this sorted out.
0 coins
Zainab Ibrahim
•Good luck! Sounds like you're on the right track now.
0 coins
Miguel Ramos
•Yeah keep us posted. These kinds of situations help everyone learn what to watch for.
0 coins