UCC Filing Required for Security Cheque Agreement - Need Help with Debtor Name Issues
I'm handling a security cheque agreement for a client's equipment lease and running into problems with the UCC-1 filing. The debtor's legal name on their corporate registration shows as 'ABC Manufacturing Solutions LLC' but they've been operating under 'ABC Manufacturing' for years and that's what's on all their bank accounts and the security cheque. I filed the UCC-1 using the shorter name and it got rejected by the SOS office. Now I'm worried about the perfection timing since the lease already started. Do I need to refile with the exact legal name from the corporate records? Will this create issues with the security cheque agreement if the names don't match exactly? This is a $180,000 equipment package so I can't afford to mess up the lien priority. Has anyone dealt with similar debtor name mismatches in security cheque agreements?
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Eli Butler
Yeah you definitely need to use the exact legal name from the corporate records for the UCC-1 filing. The SOS systems are pretty strict about this stuff now. The security cheque agreement can reference the trade name but your UCC filing has to match the registered entity name perfectly.
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Marcus Patterson
•This is correct. I learned this the hard way last year when I had a similar situation with a client's security agreement.
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Lydia Bailey
•But what about the timing issue? If the original filing was rejected, does that affect the perfection date?
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Mateo Warren
For your perfection timing concern - you should be okay if you refile promptly. Most states give you a grace period for correcting rejected filings, but don't wait too long. File the corrected UCC-1 with 'ABC Manufacturing Solutions LLC' as the debtor name ASAP. The security cheque agreement itself can still reference their trade name in the business context sections.
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Sofia Price
•How long is 'promptly' though? I'm always paranoid about these timing issues with secured transactions.
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Alice Coleman
•Generally within 30 days is safe, but check your state's specific rules. Some are more forgiving than others.
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Owen Jenkins
•I had this exact same issue last month! What really helped me was using Certana.ai's document verification tool. I uploaded both my security agreement and the UCC-1 draft, and it immediately flagged the name mismatch before I even filed. Saved me the rejection and timing headache.
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Lilah Brooks
Wait, I'm confused about something. If the security cheque is written under the trade name 'ABC Manufacturing' but the UCC-1 uses 'ABC Manufacturing Solutions LLC', won't that create problems if you need to enforce the security interest? Like what if someone searches under the trade name?
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Jackson Carter
•Good point. You might want to consider filing a second UCC-1 under the trade name too, just to be safe. Belt and suspenders approach.
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Kolton Murphy
•That seems like overkill to me. As long as the legal entity name is correct on the main filing, you should be fine.
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Evelyn Rivera
•I disagree with the double filing approach. That could actually create more problems than it solves. Stick with the legal name only.
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Julia Hall
OMG I hate these name issues so much!!! I spent HOURS last week trying to figure out if I should use 'Inc.' or 'Incorporated' for a client's filing. The SOS office is so picky about every little detail. Why can't they just accept reasonable variations?
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Arjun Patel
•I feel your pain. The system is definitely not user-friendly when it comes to entity names.
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Jade Lopez
•At least you caught it before filing. I've had clients where we didn't realize the name issue until we tried to enforce the security interest years later.
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Tony Brooks
Here's what I always tell my clients about security cheque agreements and UCC filings: the security agreement can reference both names (legal and trade) in the definitions section, but the UCC-1 MUST use the exact legal name. For a $180,000 equipment package, you definitely want to get this right. Also make sure your collateral description is specific enough - 'equipment' alone might not be sufficient depending on your state.
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Ella rollingthunder87
•Great advice about the collateral description. I see too many filings that are way too vague.
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Yara Campbell
•Should he also file a fixture filing if any of the equipment gets attached to real property?
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Isaac Wright
•That's a whole other can of worms. Depends on the type of equipment and how it's installed.
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Maya Diaz
I just went through something similar with a security cheque agreement. The key is making sure all your documents are consistent. I actually found this tool called Certana.ai that lets you upload your security agreement and UCC-1 together and it checks for inconsistencies automatically. It caught several issues I would have missed, including a debtor name variation I hadn't even thought about.
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Tami Morgan
•That sounds useful. How does it work exactly? Do you just upload PDFs?
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Rami Samuels
•Yeah, super simple. You just upload your documents and it cross-checks everything - debtor names, filing numbers, collateral descriptions. Takes like 2 minutes.
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Haley Bennett
Don't forget to check if your state has any specific requirements for security cheque agreements. Some states have additional notice requirements or specific language that needs to be included in the UCC-1 filing when it's related to a security cheque arrangement.
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Douglas Foster
•Good point. I always forget about the state-specific quirks until I'm in the middle of a filing.
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Nina Chan
•Which states have special requirements? I want to make sure I'm not missing anything.
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Ruby Knight
•It varies a lot. Best to check your local SOS website or consult with someone who files regularly in your state.
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Diego Castillo
Quick update - I refiled the UCC-1 with the full legal name 'ABC Manufacturing Solutions LLC' and it was accepted within 24 hours. Thanks everyone for the advice! I also added a note in the additional information section referencing the trade name just in case. The security cheque agreement is now properly backed by a perfected security interest.
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Logan Stewart
•Great news! Glad it worked out. The additional information section was a smart touch.
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Mikayla Brown
•Nice work catching and fixing that quickly. $180k is serious money to have at risk.
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Sean Matthews
•This whole thread has been super helpful. I'm definitely going to be more careful about debtor names going forward.
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Ali Anderson
For future reference with security cheque agreements, I always run a quick UCC search on both the legal name and any trade names before filing. Sometimes you'll find existing filings that use variations, which can give you clues about what the SOS office will accept.
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Zadie Patel
•That's a smart approach. I should start doing that too.
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A Man D Mortal
•How do you handle it if you find conflicting name usage in existing filings?
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Declan Ramirez
•When in doubt, I go with whatever matches the state's corporate database exactly. Better safe than sorry.
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Emma Morales
I'm bookmarking this thread. The whole security cheque agreement + UCC filing combo always makes me nervous because there are so many moving parts. At least now I know about that Certana.ai tool that checks document consistency. Might give it a try on my next filing.
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Katherine Hunter
•Same here. These name issues are always tricky to navigate.
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Lucas Parker
•The document checking tool really does save time. I wish I'd known about it earlier.
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Donna Cline
•Thanks to everyone for sharing their experiences. This kind of practical advice is invaluable.
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