UCC Filing Complications with GSA Security Agreement - Name Mismatch Issues

This makes sense but how do you verify which name is the "correct" one? I've seen cases where companies use different versions of their name across different registrations.

Check their Articles of Organization filed with the state. That's the definitive legal name for UCC purposes. The GSA contract name is just how they do business with the federal government.

You're right to be concerned. Referencing a specific GSA contract number might limit your security interest to only equipment purchased under that particular contract. What happens if they get a new GSA contract or buy equipment through other channels?

That's actually a great point I hadn't considered. Our security agreement does cover after-acquired equipment, so maybe the UCC-1 collateral description should be broader than just the GSA contract reference.

How accurate is that tool? I'm always skeptical of automated systems for something as critical as UCC filings.

It's pretty thorough - caught things our legal team missed during manual review. Obviously you still need human judgment, but it's great for catching obvious mismatches and inconsistencies between documents.

Interesting. Do you just upload PDFs and it does the comparison automatically?

Yes, exactly. Upload your security agreement, then your UCC-1, and it cross-checks debtor names, amounts, and other key fields. Really straightforward process.

Good point. In our case, ABC Solutions LLC is both the GSA contractor and our borrower, but I can see how that could get complicated with larger companies.

Yeah, we had a nightmare with a defense contractor where the parent company held the GSA contract but three different subsidiaries were involved in our financing. Ended up filing separate UCC-1s for each entity.

Tell me about it. We spend more time on paperwork compliance than actually managing the loans sometimes.

At least with UCC filings you only have to deal with state requirements. Try dealing with federal procurement regulations on top of that!

That's a smart approach. I'll run a search this afternoon to see what's already on file.

Good idea. Also check if there are any trade name filings that might explain the different name formats.

When you do the search, look for both name variations just to be thorough. Better safe than sorry with UCC filings.

For high-dollar deals, a legal opinion might be worth it. Especially if you're dealing with federal contracts where there might be additional complications.

We usually get opinions on anything over $500K involving government contractors. Too many moving parts to risk it.

How long do you typically have to file a corrective amendment without losing priority?

Depends on the state, but generally you want to fix it ASAP. Some states are more forgiving than others about "seriously misleading" name errors.

I thought there was a safe harbor period for minor name variations, but I might be thinking of a different state's rules.

Great news! That definitely gives you some comfort that you used the right name format.

Smart to do that research. Always good to see how other lenders have handled the same debtor.

Good to know. We're always looking for ways to streamline our UCC filing process and reduce errors.

Thanks for the feedback on that. I might give it a try on our next filing to see how it compares to our current manual review process.