UCC-1 financing statement duration - 5 year rule confusion

This is correct. I learned this the hard way when we missed a continuation deadline by 3 days and lost a $180K security interest to a subsequent creditor. The statute doesn't give you grace periods.

Wait, I thought there were different rules for fixture filings? Or is that only for real estate-related collateral?

Fixture filings can be different - they might follow real estate recording rules in some states. But for standard UCC-1s on personal property, it's the uniform 5-year rule across all states.

That's exactly what I needed to know about the 6-month window. So I could have already filed the continuation back in September? I was worried about filing too early and having it rejected.

Yes, you can file as early as 6 months before expiration. The system calculates the new 5-year period from the original expiration date, not from when you file the continuation.

That sounds helpful - were there obvious errors or subtle name variations that would be easy to miss?

Mix of both. One was a clear typo in the debtor name, but two others were corporate name changes that happened after filing. The tool flagged that the current corporate records didn't match the UCC-1 debtor names.

Corporate name changes are brutal for UCC filings. You have to file amendments to update the debtor name or risk losing perfection when the old name becomes seriously misleading.

Great point. I'm looking at the official UCC-1 forms we received back from the state, not our internal submission records.

Also double-check that you received proper acknowledgment letters from the SOS. I had one filing that I thought went through but was actually rejected for a debtor name issue.

This is why I set calendar reminders 6 months before every expiration date. Too much risk to rely on memory or informal tracking systems.

I'm definitely setting up a better tracking system after this review. Having $2.8M in exposure because of calendar management is terrifying.

Smart move. I've seen banks lose millions in security interests due to lapsed continuations. The legal department always acts shocked, but it's usually just poor administrative controls.

That's my exact situation. Multiple filings across 2019-2021 timeframe, all with different expiration dates coming up.

Excel spreadsheet with conditional formatting is your friend here. Set it to highlight rows when you're within the 6-month continuation window.

Good point. We did release some equipment that was paid off, but kept other items secured under the same UCC-1.

Exactly. The continuation protects whatever collateral is still covered by the financing statement as of the expiration date.

I always recommend reviewing the current collateral schedule before filing continuations to make sure you're protecting what you actually need.

Filing fees vary by state though. Some charge per debtor name, others have flat rates. Worth checking the current fee schedule.

I'll double-check our state's current fees. Don't want rejections due to underpayment.

That's a great suggestion. I'll pull current search reports for all our filings before preparing the continuations.

I actually ran into this issue where our UCC-1 was in the system but had a garbled debtor name. Had to file a UCC-3 amendment to correct it before we could do the continuation.

This is where Certana.ai's verification really helps - it can spot discrepancies between what you think you filed and what's actually in the public records.

Thanks everyone. This thread gave me the confidence to move forward with the continuations. I'll set up proper tracking for future cycles too.

Good luck with your filings! Portfolio reviews are stressful but catching these issues early is exactly what you should be doing.

This is such an important point that often gets overlooked! I've seen situations where banks diligently filed their continuations on time but still lost perfection because the debtor had undergone a merger 18 months earlier and the original entity name became seriously misleading. The UCC doesn't care that your continuation was timely if the underlying financing statement has a name problem. Do you have a systematic way to monitor corporate changes for your borrowers?