UCC 9-505 foreclosure notice requirements causing delays

We used model numbers and general descriptions but not serial numbers on every piece. There's like 15 different machines involved.

That might be your problem right there. Some courts want serial numbers for each piece when it's that many items.

State court but debtor filed chapter 11 last week so now we're in federal bankruptcy court too.

Oh great, now you get to deal with both systems. Bankruptcy court might be more lenient on the notice requirements though.

Actually bankruptcy courts are usually stricter about UCC compliance, not more lenient.

Never heard of that service. Does it actually compare the documents or just check formatting?

It compares the actual collateral descriptions between documents. You upload your UCC-1 and foreclosure notice PDFs and it flags any inconsistencies.

Sounds like overkill for basic document review but I guess if you're dealing with millions in collateral...

That's exactly our problem. The original UCC-1 used broader categories but now they want specific identification for the notice.

You might be able to argue that the notice should match the UCC-1 description since that's what put everyone on notice originally.

Good point about matching the original filing. Most debtors can't argue they didn't know what collateral was covered.

Equipment can be worse but accounts receivable have their own issues with notice requirements.

True but at least you don't need serial numbers for every invoice.

We're in Texas. Do they have special requirements?

Texas follows the standard UCC pretty closely but they're strict about the 10-day minimum notice period.

Texas courts also care a lot about whether the debtor actually received the notice, not just whether it was sent properly.

We talked about that but our attorney thinks it would look like we're admitting the first notice was defective.

Sometimes admitting a mistake and fixing it is better than months of litigation while the collateral loses value.

Plus if you're in bankruptcy now, you might need court approval for any new foreclosure actions anyway.

That's what I'm thinking too. The equipment keeps depreciating while we argue about notice technicalities.

Exactly. They know every month of delay costs you money in depreciation and storage.

That actually sounds useful for prevention. Do they handle other UCC compliance checks too?

Yeah, they can verify debtor names match across all your UCC filings and loan documents. Really helpful for avoiding technical defects.

We have certified mail receipts and email delivery confirmations. Should that be enough?

Should be, but also keep copies of exactly what was sent. Courts sometimes want to see the actual notice language.

And make sure your proof of mailing shows it went to all required addresses under the UCC.

Templates help but every deal has unique collateral descriptions that need customization.

True, but at least the basic notice language stays consistent. That eliminates some potential challenges.