UCC amendments causing debtor name verification headaches - anyone else?

This is solid advice. I learned this the hard way when a client's corporation went from 'XYZ Corp' to 'XYZ Corporation' and I filed an amendment with the new name. Created a whole mess with the lien search results.

Wait, so if a company changes from Inc to LLC you have to use the old name on amendments? That seems backwards...

It does seem backwards, but think of it this way - the UCC system needs to create a clear chain of filings. If you change the debtor name without proper procedures, searchers might not connect your new amendment to the original filing.

Interesting, never heard of that tool. How accurate is it with catching name variations? My situation has some subtle differences in punctuation and entity type designations.

Pretty thorough from what I've seen. It caught issues I completely missed, like inconsistent use of periods and commas in the business name. The workflow is really simple - just upload your documents and it generates a comparison report.

Honestly sounds too good to be true. How much does something like that cost? I do maybe 50 UCC filings a year so if it's expensive per use...

I focus more on the value than cost - one rejected filing due to name inconsistencies costs way more in time and client relationships than any verification tool. Plus it gives you documentation to show your client you did proper due diligence.

Good point - I should review the loan docs more carefully. This is an SBA deal so there might be additional federal requirements I'm missing.

SBA loans definitely have stricter documentation requirements. You'll want to make sure your amendment doesn't inadvertently create any gaps in perfection that could affect the SBA guarantee.

Tell me about it. I've had rejection notices that referenced rules that don't even exist in our state's UCC code. The inconsistency is maddening.

I feel your pain but try to stay focused on the specific issue. The debtor name consistency problem is actually pretty well-established in most states - it's the portal interfaces that make it confusing.

That makes sense from a documentation standpoint. Do you file them simultaneously or wait for the name change amendment to be accepted first?

I usually file them at the same time but make sure the collateral amendment references the file number from the debtor name amendment. Most SOS systems can handle simultaneous amendments as long as the references are correct.

Wouldn't this approach create a gap in time where the collateral isn't properly described though? If there's any delay in processing...

I pulled their current articles of incorporation and certificate of good standing - the legal name definitely changed. They filed an amendment to their corporate charter in 2023.

OK that's definitely a legal name change then. You'll need to address it properly in your UCC filings or risk perfection issues later.

Great point about the searcher perspective. That's really what the whole system is designed around - making sure security interests can be discovered by interested parties.

This is why I always recommend doing UCC searches under multiple name variations before filing any amendments. Helps you understand what's already out there.

Interesting approach. Would the lender be OK with changing the file number though? Their loan system might be tied to the original UCC-1 number.

Most lenders can handle file number changes as long as you provide proper documentation. The key is maintaining continuous perfection without any gaps.

Seems like more work than necessary. Amendments exist for a reason - why complicate things with terminations and new filings?

Smart idea. I should have done this first. Do you recommend using the state's official search system or a commercial service?

For something this critical, I'd use both. The state system is authoritative, but commercial services sometimes catch variations that the state system misses.

Good to hear another positive experience. I'm definitely going to try it before I submit anything else.

Same here, had good results with their verification system. Especially useful when you're working with multiple entity name changes like I was dealing with last month.

Glad it worked out! Always nice to hear a success story. This thread will probably help others facing similar issues.

Great outcome. The two-step approach really is the safest way to handle name changes with UCC amendments.

Thanks for posting the update. I'm bookmarking this thread for future reference - very helpful discussion.