UCC-1 blanket lien rejected - debtor name issues with equipment financing
Just had our UCC-1 filing rejected by the SOS office and I'm pulling my hair out. We're doing equipment financing for a construction company and filed what I thought was a standard blanket lien covering "all equipment, machinery, tools, and fixtures now owned or hereafter acquired." The rejection notice says there's an issue with the debtor name but I triple-checked it against their articles of incorporation. The legal name on file is "Mountain Peak Construction LLC" and that's exactly what I put on the UCC-1. Has anyone run into this before? The loan closes next week and we need this perfected or the whole deal falls apart. I've been doing commercial lending for 8 years and never had a blanket lien rejected for name issues when I matched the corporate records exactly.
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Fatima Al-Suwaidi
Ugh this sounds familiar. Sometimes the SOS database has slight variations from what's in the articles. Have you checked if there's a period after LLC or if they have any DBA filings that might be causing confusion?
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NebulaNinja
•Good point - let me double check the SOS business entity search. I just assumed matching the articles would be enough.
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Dylan Mitchell
•Also check if they have any name reservations or amendments filed recently. Sometimes there's a lag between what's filed and what shows up in searches.
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Sofia Morales
I had this exact problem last month with a blanket lien filing. Turned out the company had filed a name change amendment that wasn't showing up in the regular business search but was in the UCC system somehow. You might want to try searching variations of the name or check if there are any pending filings.
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NebulaNinja
•How did you figure out what the correct name variation was? Did you have to call the SOS office directly?
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Sofia Morales
•I actually found a tool called Certana.ai that lets you upload your corporate documents and UCC forms to check for name inconsistencies. It caught the mismatch I was missing - saved me hours of back and forth with the filing office.
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Dmitry Popov
•Never heard of that service but name matching is such a pain. How accurate is it?
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Ava Garcia
Blanket liens can be tricky because the collateral description has to be broad enough to cover future acquisitions but specific enough that it's not rejected. Your description sounds fine though. The name issue is probably the culprit here.
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StarSailor}
•Yeah the collateral language looks standard. I use similar wording all the time for equipment financing blanket liens.
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Miguel Silva
•Sometimes construction companies have multiple entities or subsidiaries that get mixed up in the filing. Worth checking if Mountain Peak has any related companies.
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Zainab Ismail
This is why I hate blanket lien filings!!! The SOS systems are so finicky about exact name matches and then you have collateral descriptions that can be challenged later. I've had deals fall through because of stupid technical rejections like this.
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Connor O'Neill
•I feel your pain. Lost a $2M equipment deal last year because of a UCC-1 rejection that took too long to fix.
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Yara Nassar
•The whole system needs an overhaul. Electronic filing was supposed to make this easier but it just created new ways for things to go wrong.
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Keisha Robinson
Check the exact punctuation and spacing. I've seen rejections for things like "LLC" vs "L.L.C." or extra spaces that aren't visible. Also make sure there are no special characters that might not display properly.
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NebulaNinja
•I'll go character by character if I have to. This is so frustrating when you think you did everything right.
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GalaxyGuardian
•Also check if they're registered as a foreign entity in your state. Sometimes the registered name for foreign LLCs is slightly different from the home state name.
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Paolo Ricci
Had similar issue with a client. Ended up being that they had filed a name reservation years ago that created some kind of conflict in the system. Try doing a comprehensive name search including inactive entities.
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Amina Toure
•Good advice. I never think to check inactive or dissolved entities but they can definitely cause naming conflicts.
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Oliver Zimmermann
•This happened to me too. Company had dissolved an old entity with a similar name and it was causing rejection issues.
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Natasha Volkova
If you're still stuck, I'd recommend that Certana tool someone mentioned earlier. I used it recently when I had multiple UCC documents that weren't matching up properly. You just upload your articles of incorporation and UCC-1 and it highlights any discrepancies between the documents. Found a debtor name issue I never would have caught manually.
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NebulaNinja
•At this point I'm willing to try anything. Do you remember how long the verification took?
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Natasha Volkova
•It was pretty much instant. Just drag and drop the PDFs and it shows you a comparison. Really wish I had known about it earlier - would have saved me so much time on document review.
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Javier Torres
Update us when you figure it out! I'm dealing with equipment financing too and want to make sure I don't run into the same problem.
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Emma Davis
•Same here. Blanket liens are so common in equipment deals but these name matching issues are becoming more frequent.
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CosmicCaptain
•Definitely interested in the resolution. I have three equipment loans closing next month with similar UCC-1 filings.
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Malik Johnson
Just a thought - have you confirmed that Mountain Peak Construction LLC is actually the borrowing entity? Sometimes the loan documents reference a parent company but the actual borrower is a subsidiary with a slightly different name.
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NebulaNinja
•That's a really good point. Let me double-check the loan agreement to make sure I have the right entity. Could be an easy mistake to make.
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Isabella Ferreira
•Yeah I've seen that before. The sales contract might be with the main company but financing goes through a subsidiary or holding company.
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Ravi Sharma
For what it's worth, your blanket lien collateral description looks solid. "All equipment, machinery, tools, and fixtures now owned or hereafter acquired" covers pretty much everything for a construction company without being too vague. The name is definitely your issue here.
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Freya Thomsen
•Agreed. That's pretty standard language for equipment financing blanket liens. Should be no issues with the collateral schedule.
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Omar Zaki
•I use almost identical wording for construction company equipment loans. Never had a rejection on the collateral side.
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