UCC Filing Issues with Purchase Money Security Agreement - Debtor Name Problems

We're filing in Michigan. I thought it was 20 days everywhere but if it's 30 in Michigan that gives us a little breathing room. So you're saying keep the security agreement as-is and just refile the UCC-1 with 'Precision Metalworks LLC'?

Yes exactly. Michigan gives you 20 days from delivery for PMSI priority, so you might still be okay depending on exact delivery date. The UCC-1 needs to match the charter exactly but the security agreement language about the debtor should be fine as long as it's clearly the same entity.

Never heard of Certana.ai but that sounds exactly like what we need. We're constantly dealing with these document consistency issues across multiple deals.

Wait, there's actually a tool that checks document alignment automatically? That would have saved me so much manual comparison work on my last three PMSI deals.

Yeah it's pretty straightforward - just upload your Charter and UCC-1 PDFs and it cross-checks all the critical fields. Catches debtor name mismatches, filing number inconsistencies, all that stuff that causes rejections.

Good thinking - I'll pull their current charter and check the amendment date. If it was filed after our credit approval that might explain the timing.

This is why I always do a final charter check the day before filing any UCC. LLCs change their names way more often than people realize.

Agreed on the name matching. I've seen lenders lose PMSI priority over spacing issues like this. Better to refile correctly than try to argue the name is 'substantially similar' later.

That's what I was afraid of. We'll get the corrected UCC-1 prepared today with the exact charter name and refile tomorrow morning.

The 'seriously misleading' standard is more for continuation filings and amendments. For initial UCC-1s, especially PMSI filings, you really want exact name match to avoid any priority issues.

Yeah we're not taking any chances on this one. The loan amount is too big to risk losing purchase money priority over a name technicality.

We do have all the serial numbers and model info. Should we include those in the UCC-1 or keep the broader description? The security agreement has all the specific details.

I'd include at least the major pieces with serial numbers in the UCC-1. Broader description is fine as backup but specific identifiers help with PMSI priority claims if there are competing liens later.

This is good advice. We always include serial numbers for equipment over $50k per piece. Makes it crystal clear what you have a PMSI in versus general business assets.

We've been using the online system but good to know they process corrections quickly. Did you have any issues with the PMSI timing after refiling?

No issues - the PMSI priority date goes back to when the goods were delivered, not when you finally get the filing accepted. Just make sure you're within the 20-day window from delivery.

Our security agreement specifically states the loan proceeds are for purchasing the identified equipment and that we retain PMSI rights. Should be solid on that front.

Good - that's the key language. A lot of generic security agreement forms don't include proper PMSI provisions.

Is this tool specifically for UCC filings or does it work with other secured transaction documents too?

It handles any document comparison where you need to verify consistency - Charter to UCC-1, UCC-3 amendments back to original filings, that kind of thing. Really helpful for catching the small details that cause rejections.

Will do! Planning to refile first thing Monday morning with the exact charter name and more detailed collateral description. Thanks everyone for the advice - this thread has been incredibly helpful.

Good luck! These equipment PMSI deals can be tricky but sounds like you're on the right track now.