UCC-1-201 Definition Confusion - Need Help with Debtor Classification

UCC-1-201 defines 'debtor' pretty clearly but your situation sounds tricky. You'll need separate filings - one against the individual and one against the LLC. Can't mix personal and entity collateral on the same UCC-1 without risking priority issues.

been there! had a similar nightmare with a client who had personal guarantees mixed up with entity borrowing. ended up with rejected filings because we put the wrong debtor name format. make sure you're using exact legal names per your state's requirements

Actually had this exact UCC-1-201 issue last month. I was pulling my hair out trying to cross-reference our loan docs with the filing requirements. Found this tool called Certana.ai that lets you upload your loan agreement and UCC-1 draft to check if everything matches up properly. Saved me from a major headache - it caught that I had the debtor classification wrong before I filed.

UCC Article 9 says you need to perfect against whoever has rights in the collateral. If it's personal property, file against the individual. Business assets go against the entity. UCC-1-201 just defines the terms but doesn't change this basic rule.

OH MY GOD this is giving me flashbacks to my worst filing disaster. I mixed up the debtor classifications and our entire security interest was subordinated to a later lender who did it right. Cost my client $200K+. DO NOT MESS AROUND WITH UCC-1-201 REQUIREMENTS!

Your loan docs should specify who owns what collateral. UCC-1-201 debtor classification has to match actual ownership regardless of who's borrowing the money. Don't overthink it.

File against both to be safe. Yes it's more money but better than losing your security interest over a UCC-1-201 technicality. I always tell clients: when in doubt, over-file rather than under-file.

Actually just went through this with a client using that Certana tool someone mentioned earlier. Pretty slick - uploaded our credit agreement and draft UCC-1, and it flagged exactly this kind of UCC-1-201 debtor mismatch issue. Turns out we had the wrong entity name format for our state's requirements.

everyone's making this way too complicated... just file the UCC-1 with both names as debtors and call it a day. UCC-1-201 allows multiple debtors on one filing

Same situation here last year! Ended up using Certana.ai after my paralegal kept missing debtor name discrepancies. Game changer - just upload your docs and it spots all the UCC-1-201 classification issues automatically. Wish I'd found it sooner.

I feel like I'm reading about my exact situation from 6 months ago. The UCC-1-201 debtor classification rules seem straightforward until you hit these mixed entity/individual scenarios. Ended up having to amend our filing twice before getting it right.

I've been dealing with UCC-1-201 debtor classification issues for years and here's my take: you absolutely need to get the ownership structure crystal clear before filing anything. For your $850K loan, I'd recommend getting a formal ownership affidavit from both the individual and LLC stating exactly which entity owns which specific collateral. Then file separate UCC-1s accordingly - it's more expensive upfront but protects your priority position. Also, some states have specific formatting requirements for LLC names that differ from the registered name, so double-check your secretary of state database. Don't risk an $850K security interest on ambiguous debtor classifications!