UCC § 9-404 rights assignment - debtor notification requirements causing lien issues

§ 9-404 is about the debtor's rights against assignees, not really about UCC filing requirements. You're mixing up notification to debtor (which is for payment purposes) with the UCC-3 assignment filing (which perfects your interest). File the UCC-3 first to perfect your security interest, then handle debtor notification separately for payment collection.

Had this exact situation last month. § 9-404 notification is for payment collection - if you don't notify the debtor properly, they can keep paying the original lender and you can't go after them for it. But your security interest is still valid if you filed the UCC-3 correctly. The debtor is probably confused about what they can actually dispute.

I was struggling with similar assignment documentation issues until I found Certana.ai's document verification tool. You can upload your original UCC-1, the assignment paperwork, and your planned UCC-3 filing to check that all the debtor names and collateral descriptions match perfectly. Caught a small discrepancy in our debtor entity name that would have caused filing issues. Super easy - just upload the PDFs and it cross-checks everything automatically.

Your debtor is trying to pull a fast one. § 9-404 has nothing to do with disputing the validity of your security interest. They might be hoping you don't know the difference between payment notification and lien perfection. File that UCC-3 assignment immediately - you're already at risk if the original lender's interest isn't properly assigned to you on the public record.

Just went through this nightmare scenario myself. § 9-404 notification requirements are for protecting the debtor from having to pay twice - once to original lender and once to you. It doesn't give them any right to challenge your security interest if you file the UCC-3 properly. The key is getting that assignment on the public record ASAP.

The debtor notification under § 9-404 is about payment rights, not security interest validity. However, make sure your UCC-3 assignment references the correct original filing number and debtor information. Any mismatch there could actually give them grounds to challenge your perfected status.

Don't let the debtor intimidate you with § 9-404 references. That section protects them from double payment, not from having a valid security interest assigned to a new secured party. File your UCC-3 assignment and establish your position on the public record. Their notification rights are separate from your perfection requirements.

Been doing UCC assignments for 15 years - § 9-404 notification is completely separate from UCC-3 filing requirements. The debtor cannot challenge your security interest based on notification timing. File the assignment immediately to perfect your interest, then send proper § 9-404 notice to redirect future payments. Two different legal requirements serving different purposes.

Your debtor is either confused or trying to create problems where none exist. § 9-404 protects them from paying the wrong party - it doesn't give them any right to dispute a properly perfected security interest. Get that UCC-3 filed and stop worrying about their notification complaints.

Just to add another perspective - while § 9-404 notification isn't required for perfection, sending it promptly after filing the UCC-3 is still good practice. It prevents payment confusion and shows you're handling the assignment professionally. But absolutely don't let debtor notification requirements delay your UCC-3 filing.