UCC filing complications with omnibus loan and security agreement - multiple collateral schedules

This is correct. Even with cross-collateralization in your omnibus structure, the UCC system requires individual debtor filings. Each subsidiary needs its own UCC-1.

But what about the collateral descriptions? Do they need to be identical across all four UCC-1s or can they be tailored to each debtor's specific assets?

How did that work exactly? Did you upload each UCC-1 separately or can it handle multiple filings at once?

You can upload the omnibus agreement and then each UCC-1 to check consistency. It flags any debtor name mismatches or collateral description conflicts between the master agreement and individual filings.

That sounds helpful but I'm skeptical about automated tools catching the nuances of omnibus structures. These agreements can be pretty complex.

What about continuation timing though? Do all four UCC-1s need to be continued simultaneously or can they be staggered?

They can be staggered based on their individual filing dates, but most lenders prefer to synchronize continuations for omnibus structures to avoid missing any entities.

That's a painful lesson. How long did it take to correct and refile everything properly?

About 3 weeks total. Had to draft individual UCC-1s for each entity and deal with the gap in perfection timing. Not fun explaining that to senior management.

Agreed. We learned this the hard way when trying to foreclose. Vague collateral descriptions in the UCC-1s didn't match the detailed schedules in our omnibus loan and security agreement.

So you're saying tailor each UCC-1's collateral description to that specific debtor's assets rather than copying the omnibus language exactly?

Exactly. The omnibus agreement can reference all assets collectively, but your UCC-1 should describe what that specific debtor actually owns.

This is huge. I've seen filings get rejected because the omnibus agreement used abbreviated entity names that didn't match the state incorporation records.

Is there a way to check this systematically when you have multiple entities?

How accurate is it with subsidiary entity names? Some of our entities have really long legal names with multiple LLC designations.

It handles complex entity names well. Caught a missing comma in one of our subsidiary names that would have caused a rejection.

Good point. Amendment timing becomes crucial when you have multiple entities under one omnibus loan and security agreement.

Yeah, we had to file 5 separate UCC-3 continuations last year. Expensive but necessary to maintain perfection across all entities.

Exactly. The cross-collateralization benefits of the omnibus structure don't override basic UCC filing requirements.

Thanks everyone, this helps clarify our approach. Looks like individual UCC-1s are definitely the way to go.

That sounds like exactly what we need. Does it also check collateral description consistency across multiple debtors?

Yes, it flags any collateral description conflicts between the omnibus agreement and individual UCC-1 filings. Helps ensure everything aligns properly.