UCC Security Interest Perfection Requirements - Filing Rejected Due to Missing Elements

This is exactly right. We had three rejections last month because our collateral descriptions were too generic. 'All equipment' doesn't fly in most jurisdictions anymore.

Wait I thought the UCC was supposed to be notice filing, not detailed inventory? Are we going backwards on this?

It's still notice filing but some SOS offices are getting pickier about what constitutes adequate notice. Better to be specific than get rejected.

We definitely had addresses for both parties. I'm wondering if it's something more subtle like the formatting or maybe we missed a checkbox somewhere in the filing portal.

Check the debtor type - if you marked it as an individual when it should be organization that'll cause a rejection. The perfection requirements are different.

That sounds really useful - did it catch other issues besides the name mismatch? We're paranoid about missing something else at this point.

Yeah it also flagged that our collateral description in the UCC-1 didn't align with what was in our security agreement. Nothing that would cause rejection but good to catch for consistency.

How detailed does it get with the verification? We deal with complex multi-state filings and need something that can handle the variations.

We have a signed security agreement that authorizes the filing. I think we're good on the authorization front.

Make sure the person who signed actually had authority to bind the corporation. I've seen that become an issue on larger deals.

Don't forget about continuation statements! If this is an amendment to an existing filing, make sure your continuation deadlines haven't lapsed.

Good point - lapsed continuations are another common issue that can affect perfection status.

Actually this sounds like an initial filing not a continuation based on the post. But always good to check the dates on any existing filings.

Seriously! How hard would it be to give specific error messages instead of these vague 'insufficient information' responses?

At least some states are moving to better online systems. But yeah, the rejection notices could be way more helpful.

I'll try that today. Hopefully they can point us in the right direction so we don't waste time on another incorrect filing.

When you call, have your filing number ready and ask to speak to someone in the UCC division specifically.

It's manufacturing equipment but some of it might be considered fixtures. How do you determine what qualifies as fixtures vs regular equipment?

Generally if it's permanently attached to the building or would cause damage to remove, it's probably a fixture. When in doubt, file both types.

Fixture filings have different requirements too - you need the real estate description and sometimes the property owner's consent.

This happened to us too - we put 'Delaware' instead of 'DE' and got rejected. Such a simple thing but it matters.

I'll double-check all our formatting. It's frustrating how picky these systems can be about minor details.

That's the second mention of that tool in this thread. Sounds like it might be worth trying for our refiling to make sure we don't miss anything else.

I'm always skeptical of these verification services but if it prevents rejections it might be worth it. The time cost of refilings is brutal.

I was skeptical too but it's actually pretty straightforward - just upload PDFs and get instant feedback. Much faster than manual document comparison.

The debtor and collateral are in the same state, so we should be good on the multi-state issue. But thanks for the reminder - that's definitely caught people off guard before.

Always good to double-check the choice of law provisions in your security agreement too.

Glad you got it figured out! Amazing how one punctuation mark can derail the whole perfection process.

This is exactly the kind of thing that document verification would have caught upfront. But at least you know what to fix now!

Good luck with the refiling! Hopefully this one goes through without any issues.