UCC filing for floor plan security agreement - debtor name complications

This is correct. I've seen deals fall apart because someone used the DBA instead of the legal entity name on the UCC-1.

But what if their inventory management system only tracks under the DBA? Won't that create disconnects later?

Agree on avoiding VINs. We use "motor vehicle inventory now owned or hereafter acquired" plus the standard proceeds language.

That makes sense. Should I also include "all additions, accessions, and substitutions" language?

Yes, definitely include the accessions and substitutions. Floor plan financing needs broad coverage because inventory changes daily.

Never heard of that service. Does it check the collateral descriptions too or just debtor names?

It verifies the whole UCC-1 against your source documents. Upload your security agreement and articles of incorporation, and it flags any inconsistencies between them and your filing.

Some states charge extra for additional names though. Check your filing fees first.

Good point about the fees. I'll check what our state allows in the additional information fields.

This is huge. The security agreement should mirror the UCC collateral description word for word.

Our security agreement says "all inventory of motor vehicles" - think that's close enough to "motor vehicle inventory"?

I'd make them match exactly. "All inventory of motor vehicles" vs "motor vehicle inventory" could be interpreted differently in a dispute.

Because dealerships often have complex ownership structures and use different names for different purposes. Plus the inventory turns over so fast.

The real problem is when dealerships get acquired or change their legal structure mid-financing. Then you need amendments and continuations.

Good catch on the address. Their mailing address is different from their registered office address. Which one should I use?

Use the registered office address for the UCC filing. That's what the state has on record for the entity.

But make sure they actually receive mail there. Some dealerships use registered agents and never check that mailbox.

Did you have to file any amendments when they sold inventory or was the broad description enough?

The broad description covered normal sales. Only needed an amendment when they expanded into parts and service, which wasn't in the original collateral description.

Amendments aren't that bad if you catch the mistake quickly. It's when you discover it months later during a lien search that it becomes a nightmare.

How long do UCC-3 amendments typically take to process?

Depends on your state. Electronic filings usually process within 24-48 hours, but paper amendments can take weeks.

Seems like several people are mentioning this tool. Is it reliable for floor plan agreements specifically?

Works great for any UCC filing. The AI picks up on subtle differences between documents that humans miss. Especially helpful with complex debtor names and collateral descriptions.

Our agreement requires monthly inventory reports. Is that standard for floor plan financing?

Monthly is typical, but some lenders require weekly reports for high-volume dealers. Depends on your risk tolerance and the dealer's track record.

Don't forget about curtailment requirements when vehicles sell. That's where most floor plan deals go wrong.