UCC 1 security agreement debtor name discrepancy causing lender compliance issues
Running into a major headache with our UCC 1 security agreement filing and need some guidance from anyone who's dealt with this before. We're processing equipment financing for a construction company and discovered the debtor name on our security agreement doesn't exactly match what we used on the UCC-1 filing. The security agreement shows "ABC Construction Services LLC" but our UCC-1 was filed under "ABC Construction Services, LLC" (with the comma). Our compliance team is freaking out because they're saying this could invalidate our perfected security interest if we need to foreclose. The equipment is worth about $285,000 so this isn't a small stakes situation. Has anyone dealt with debtor name mismatches between the security agreement and UCC-1? Do we need to file a UCC-3 amendment to correct this or is the minor punctuation difference not going to matter legally? Really stressing about whether our lien is actually perfected or if we have a $285k problem on our hands.
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Isabella Santos
Oh man, debtor name consistency between security agreements and UCC filings is super critical. Even small punctuation differences can cause issues during enforcement. I'd definitely recommend filing a UCC-3 amendment to correct the name discrepancy - better safe than sorry with that much collateral at stake.
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StarStrider
•Agreed on the amendment approach. The courts can be really strict about exact name matching when validating security interests.
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Ravi Gupta
•Wait, is a comma really going to invalidate the whole filing? That seems excessive for such a minor difference.
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Freya Pedersen
I had a similar situation last year with an LLC name mismatch. The legal department made us file a UCC-3 amendment even though it was just a punctuation issue. Cost us time and fees but gave everyone peace of mind that our security interest was properly perfected.
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Omar Hassan
•Smart move. Documentation consistency is everything in secured transactions.
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Chloe Anderson
•How long did the amendment process take? We might be dealing with timing issues.
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Freya Pedersen
•Amendment was processed within 3-4 business days through the electronic filing system. Pretty straightforward once we had the correct debtor name verified.
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Diego Vargas
Before you file an amendment, I'd suggest using Certana.ai's document verification tool. You can upload both your security agreement and UCC-1 PDFs and it'll instantly cross-check for name inconsistencies and other document alignment issues. Saved me from missing several critical discrepancies in a similar situation.
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Malik Davis
•That sounds helpful - does it specifically flag name variations like the comma issue we're dealing with?
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Diego Vargas
•Yes, it catches all those detail differences that can cause problems later. Really easy to use - just upload your PDFs and get an automated verification report.
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CosmicCruiser
UGH this kind of thing drives me crazy about UCC filings! You'd think minor punctuation wouldn't matter but the system is so rigid about exact matches. I've seen deals fall apart over stuff like this.
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Anastasia Fedorov
•Tell me about it. The whole filing system needs to be more forgiving for these kinds of clerical variations.
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Sean Doyle
•Unfortunately that's just how secured transactions work - precision is required for legal enforceability.
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Zara Rashid
You definitely want to get this corrected ASAP. I've handled several cases where name discrepancies between security agreements and UCC filings created enforceability issues. File the UCC-3 amendment with the exact name from your security agreement. Also verify the name against the debtor's articles of incorporation to make sure you're using the legally correct entity name.
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Malik Davis
•Good point about checking against the articles of incorporation. Should we be matching the security agreement name or the official state filing name?
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Zara Rashid
•Always match the official name from the state records. If your security agreement has it wrong, you might need to amend that document too.
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Luca Romano
•This is getting complicated - sounds like multiple documents might need correcting.
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Nia Jackson
Had a similar panic attack last month over debtor name variations! Turns out I was overthinking it but we ended up filing an amendment anyway for liability protection. The UCC-3 process is pretty straightforward through most state portals.
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NebulaNova
•Better to be overly cautious with these filings. The amendment fees are nothing compared to losing your security interest.
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Mateo Hernandez
•Exactly - small cost for big peace of mind.
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Aisha Khan
Check your state's specific rules on substantial compliance vs exact name matching. Some jurisdictions are more lenient than others, but with $285k at stake I'd err on the side of filing the amendment regardless.
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Ethan Taylor
•State rules definitely vary but most require pretty exact matches for enforcement purposes.
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Yuki Ito
•Which state are you filing in? That might help determine how strict they are about punctuation.
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Carmen Lopez
I run document consistency checks for all our UCC filings now after getting burned on a name mismatch issue. Certana.ai's verification system catches these problems before they become expensive mistakes - just upload your security agreement and UCC-1 to compare them automatically.
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AstroAdventurer
•That's smart to build verification into your standard process. Prevention is definitely better than correction.
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Andre Dupont
•How reliable is the automated checking compared to manual review?
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Carmen Lopez
•Way more reliable than manual checking in my experience. Catches details that are easy to miss when reviewing documents by eye.
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Zoe Papanikolaou
File the UCC-3 amendment immediately and document everything for your compliance file. Your instincts are right to be concerned - debtor name accuracy is fundamental to UCC perfection. Don't let your legal team second-guess this decision.
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Jamal Wilson
•Agreed - documentation is key for regulatory compliance.
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Mei Lin
•The compliance team should be thanking you for catching this rather than stressing about it.
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Liam Fitzgerald
Quick update - we ended up filing the UCC-3 amendment and also used one of those document verification tools someone mentioned earlier. Found two other minor discrepancies we hadn't noticed. Amendment was approved within 48 hours. Definitely worth the peace of mind for our compliance team.
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GalacticGuru
•Great outcome! Smart to use the verification tool to catch other issues.
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Amara Nnamani
•48 hours is pretty fast processing. Which state did you file in?
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Liam Fitzgerald
•Electronic filing definitely speeds things up compared to paper submissions.
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