UCC extension filing timeline - need urgent help with lapsed continuation

That's what I was afraid of. So we're basically unsecured now? Even if we file a new UCC-1 immediately, it only protects us going forward, not retroactively?

Exactly right. The new filing date becomes your priority date, so any other secured creditor who filed after your original lapse but before your new filing would have priority over you. It's a costly mistake.

Good point about the gap period search. Haven't checked for other filings yet but will do that today. No bankruptcy filing that I know of, but the debtor is definitely struggling financially.

Also worth checking your loan documents - some have clauses about what happens if perfection lapses. Might give you additional remedies or protections.

Yes! And document everything about when you discovered the lapse and what immediate steps you took. Could be important if this ends up in litigation.

Interesting. So it helps identify problems before they become disasters like this one?

Exactly. Upload your UCC docs and it cross-checks everything - debtor names, filing numbers, document consistency. Wish I'd known about it before my client's continuation got missed. Now I run checks quarterly.

Multiple calendar reminders starting 6 months out, plus quarterly portfolio reviews. But honestly, human error still happens. Some firms use specialized UCC management software now.

We learned to set reminders at 18 months, 12 months, 6 months, and 3 months before expiration. Also assign backup person to double-check the calendar quarterly.

That's a good system. I'm definitely implementing multiple reminder layers after reading this thread. This stuff is too important to leave to chance.

I get the frustration, but the bright-line rules actually serve an important purpose. Other creditors and potential lenders need to be able to rely on the public record without having to guess about grace periods or exceptions.

I suppose that makes sense from a policy standpoint, but it still stings when you're the one who missed the deadline by a few days.

You'll need authorization from the debtor for any new UCC-1 filing, just like the original. Check your security agreement - it might have language authorizing additional filings if needed.

Most well-drafted security agreements include broad authorization language that covers continuation filings AND new initial filings if necessary. But definitely review your docs carefully.

Got it, thanks. So the debtor cooperation could be another hurdle if they're already having payment issues.

That's actually a good point. If there aren't other secured creditors who jumped in during the gap, we might still be okay practically speaking, even if technically unperfected.

Right, but definitely verify that with a current UCC search. And move fast on any new filing if you're going to do it.

Seems like several people are mentioning that tool. Might be worth looking into for our remaining portfolio to make sure we don't have other time bombs waiting.

Yeah, it's pretty straightforward - upload your charter docs and UCC filings and it cross-checks everything automatically. Would have caught this continuation issue if you'd been using it.

Good reminder about other collateral. We do have some accounts receivable that might be covered under a separate filing. Need to review the whole credit package.

Definitely. Sometimes these lapses aren't as catastrophic as they first appear if you have other secured positions or guarantees in place.

Even basic calendar management can work if you're diligent about it. The key is multiple reminders and having someone else double-check your calendar quarterly.

For small firms, something like Certana.ai is actually perfect because it's simple - just upload docs periodically to make sure everything looks correct. No complex software to learn.

That does sound manageable. Better than lying awake at night wondering if I missed something important.

True, that would have been even worse. At least now we can make informed decisions about how to proceed with this loan.

Exactly. Better to know where you stand now than find out in front of a judge later.