UCC-1 purchase money security interest filing - timing confusion on PMSI priority

Thanks - I looked up their SOS filing and it shows 'Advanced Metalworks, LLC' with no space. So our UCC-1 has the wrong name format. Does this kill our PMSI priority completely?

Not necessarily killed, but definitely compromised. You might want to file a UCC-3 amendment ASAP to correct the debtor name. The question is whether the original filing was 'seriously misleading' under the UCC standards.

Did you file an amendment? How long did it take to get resolved?

We filed a UCC-3 amendment the same day we caught the error. Took about 3 business days to process electronically. The key is acting fast once you discover the mistake.

Wait, can you still claim PMSI priority if you file an amendment after the 20-day window? I thought the original filing had to be perfect within that timeframe.

Never heard of that tool. Does it actually compare the names across different documents automatically?

Yeah, you just upload PDFs and it cross-checks debtor names, addresses, and other key fields. Super helpful for catching these kinds of errors before they become expensive problems. The name matching feature alone has saved me from several potential priority disputes.

So you think the amendment might not fix the PMSI priority issue? That's terrifying.

It depends on your state's interpretation. The majority view is that an amendment can cure minor name errors as long as it's not seriously misleading. But some jurisdictions are stricter about PMSI perfection requirements.

I agree the amendment should work in most states. The 'Advanced Metal Works' vs 'Advanced Metalworks' difference is pretty minor - both would likely pull up the same results in a search.

The precision is necessary for the search system to work properly. If names could be approximate, you'd never know if you found all the relevant filings when doing due diligence.

Tell me about it. I've seen deals fall apart over punctuation marks in debtor names. The system is unforgiving but at least it's consistent.

Working on the amendment now. Should I include any specific language about the name correction?

Just be straightforward - 'Amendment to correct debtor name from Advanced Metal Works LLC to Advanced Metalworks, LLC.' Don't overthink it.

Good point. Inventory PMSIs require notice to existing lienholders before the debtor receives the inventory. Equipment PMSIs just need to be filed within 20 days of delivery.

Exactly. The notification requirement for inventory PMSIs is a whole different headache. At least equipment PMSIs are more straightforward on timing.

What kind of documentation did you wish you had? I'm trying to build a good record in case this becomes an issue later.

Screenshots of the SOS database search results, copies of all the business formation documents, and a timeline of when each document was reviewed. Also any correspondence about the name discrepancy.

That's a good point. The existing blanket lien is pretty old and might not cover equipment acquired after the loan was made.

Exactly. Check the language in their security agreement. Most blanket liens cover after-acquired property, but some older ones don't. Could be another angle for protecting your position.

True, but PMSI priority is still the strongest position. Better to fix the name issue and maintain that super-priority status.

Sounds like it could have prevented this whole mess. Do you know if it works with SOS database searches too?

I think it's focused on document comparison rather than database searches. But catching the name discrepancy between your loan docs and UCC-1 before filing would have been huge.

Will do. Filing the UCC-3 this afternoon. Hopefully it's as straightforward as everyone says.

Good luck! The electronic filing system should give you a confirmation pretty quickly. At least you caught it early rather than discovering it during a default situation.