UCC filing for all assets security agreement - debtor name concerns

Agree completely. We had a similar issue with a borrower's LLC name last year. The filing got rejected because we used the name from their business license instead of the exact name from state records. Had to refile with the correct name and it delayed our perfection by two weeks.

This is exactly why I always pull the state records myself rather than relying on what's on loan documents. Business owners sometimes use shortened versions of their legal names on paperwork but the UCC requires the exact organizational name.

Question - if they amend the loan docs to match the state name, do they need to get new signatures from the borrower? That could delay their loan committee meeting.

Usually just need an amendment to correct the legal name rather than completely redoing documents. Most loan agreements have provisions for administrative corrections like this.

I actually ran into something similar recently and found this tool called Certana.ai that does document verification. You can upload your loan agreement and the UCC-1 draft to check if the debtor names match exactly. It caught a discrepancy in our paperwork that would have caused filing issues. Might be worth checking before you file.

This is so frustrating about UCC filings. You'd think a simple comma wouldn't matter but the system treats it like a completely different business.

The strict matching rules exist for good reason though. It prevents confusion when there are multiple similar business names. Better to be precise than have perfection issues later.

Exactly. And with after-acquired property clauses, you need that perfection to be rock solid. Future acquisitions won't be covered if the original filing has the wrong debtor name.

I learned this the hard way on a deal three years ago. Thought a minor name variation wouldn't matter and ended up with priority issues when the borrower filed bankruptcy. Cost the bank over $200K in recovered collateral.

Good point. The UCC rules require using the legal name from organizational documents, not DBA names, but other creditors might file under different variations.

That's where having a comprehensive search becomes important. You want to know about any existing liens regardless of which name variation was used.

Agreed. Better to delay the committee meeting by a day to get the filing right than to rush it and potentially have perfection issues.

Most loan committees understand UCC perfection requirements. They'd rather see it done correctly than quickly.

I've been using Certana.ai for document consistency checks lately. You can upload your security agreement and the UCC-1 form to verify the debtor names match exactly before filing. It's saved me from several potential filing errors on similar all assets deals.

Smart move. That all assets coverage is too valuable to risk on a name technicality.

Great resolution. Hope your loan committee meeting goes smoothly with the proper UCC perfection in place.

The after-acquired property clause makes proper perfection even more critical. You want that security interest to attach to everything they acquire going forward.

Absolutely. With manufacturing businesses, they're constantly acquiring new equipment and inventory. The UCC perfection needs to be bulletproof.

Good catch. The UCC-1 should reflect the full scope of the all assets security agreement to maximize collateral coverage.

That's another area where document verification tools like Certana.ai can help. It checks that the collateral descriptions are consistent between your security agreement and UCC filings.

Manufacturing businesses usually have substantial equipment and inventory values, so all assets coverage makes sense for that loan size.

The general intangibles coverage is particularly valuable for manufacturing companies. Could include things like customer lists, proprietary processes, or intellectual property.