UCC-1s rejected twice - debtor name variations causing headaches

Exactly right about checking the business database first. I learned this the hard way after three rejections in one week.

The automated systems are definitely more sensitive now. We've started doing name searches as part of our pre-filing checklist.

What about when the business database shows one name but the borrower's documents show another? Which one takes precedence?

That's a perfect example of why cross-checking is so critical. The loan docs might be correct for the contract, but the UCC filing needs to match state records.

This is why I always pull the entity documents directly from the state before filing. Can't trust what's on the loan paperwork anymore.

That sounds like exactly what we need. Do you upload the borrower's charter documents too or just the UCC forms?

You can do both - the Charter to UCC-1 check workflow is really helpful. It'll flag if your UCC debtor name doesn't match what's on the articles of incorporation or certificate of formation.

How accurate is it with catching these small differences? We've had issues with systems missing subtle punctuation.

The periods in LLC are still used in some states. It's all about what's on the official formation documents filed with that state.

If you're seeing multiple versions in the database, usually the most recent filing is the correct one, but sometimes you need to check the entity status too.

I agree it's frustrating, but the system needs consistent rules. If they allowed variations, where would they draw the line? It's actually protecting the integrity of the filing system.

I get the consistency argument, but then they need to make it crystal clear what the exact format should be. The guessing game is costing everyone time and money.

The legal name as filed with the state is the only objective standard they can use. Otherwise every filing would be subjective.

That's good advice about copying character for character. Do you ever call the filing office to confirm the name if you're unsure?

I used to, but most states have moved to online-only processing. The phone support is usually just reading from the same database you can access.

That's a classic example of why you can't trust the borrower's marketing materials. The legal name is what matters for UCC filings.

I always ask borrowers for a copy of their articles of incorporation or certificate of formation now. Can't rely on business cards or invoices.

That's true for searching and perfection effectiveness, but you still have to get the filing accepted first. The rejection is just an administrative issue, not a perfection issue.

Oh I see, so even if it would be effective once filed, they won't accept it in the first place if the name is wrong?

Exactly. The filing office has to accept it before it becomes effective. Name errors are grounds for rejection.

That's a great idea for tracking patterns. I bet you've caught some interesting variations.

You wouldn't believe some of the differences - periods, commas, abbreviations, even different word orders in some cases.

That's exactly why getting it right the first time is so important. UCC-3 amendments add cost and complexity.

How did you handle the gap period where the name was wrong? Was the lien still perfected?

Had to do some legal research on that. Fortunately the error was minor enough that it probably wouldn't have affected perfection, but the amendment was still the right thing to do.

Perfect example of why these discussions are helpful. Glad you caught it before filing!

That's exactly the kind of error that's easy to miss but guaranteed to cause a rejection. Corp vs Corporation is a common one.