UCC filing on accounts receivable - debtor name exact match requirements?

This is correct. The name has to match exactly what's on file with the state. Even something like missing a comma or using 'Inc' instead of 'Incorporated' can cause problems.

But what if the actual receivables are all under the DBA name? Wouldn't that create a disconnect between the filing and the actual collateral?

That's probably overkill for a straightforward A/R deal. 'All accounts receivable' should be sufficient and is actually cleaner.

I'd be careful about going too broad though. Some states have specific requirements for A/R descriptions, especially if you're dealing with government contracts or factoring arrangements.

That's actually really smart. Manual document comparison is where these errors usually slip through. How does that tool work exactly?

You just upload your documents as PDFs and it cross-references everything - debtor names, filing numbers, dates, all that critical stuff. Takes like 30 seconds and gives you a detailed report on any inconsistencies.

Wish I had known about this before my last filing disaster. Spent weeks trying to fix a termination that referenced the wrong UCC number.

That seems like overkill and unnecessary expense. One properly filed UCC-1 under the legal name should be sufficient.

It's not overkill if you're talking about a $180K credit line. The additional filing fees are minimal compared to the risk of an unperfected security interest.

Good point. I've seen too many deals where the lender forgot about the continuation and lost their perfected status right when they needed it most.

Actually, it's better to file the continuation in year 4.5, not year 4. Gives you more buffer time and the continuation is still valid.

The receivables still belong to the legal entity, regardless of what name appears on the invoices. The DBA is just an assumed name - the LLC is still the actual owner of the A/R.

This is exactly why the security agreement language is so important. It needs to clearly establish that all receivables generated by the debtor, regardless of the name used in business operations, are included in the collateral.

Absolutely. And make sure to search under both the legal name and any known DBAs, just to be thorough.

The search should also include similar name variations. Sometimes small differences in punctuation or word order can hide existing filings.

That's a crucial point. The description needs to be broad enough to cover the revolving nature of A/R collateral.

Also consider adding 'proceeds of accounts receivable' to catch any insurance payouts or other conversions of the A/R.

That sounds like exactly what I need. Is it expensive to use?

The cost is really minimal compared to fixing a messed up filing later. It's more about the peace of mind knowing your documents are consistent before you file.

Smart approach. Taking the extra time upfront always pays off with UCC filings.

Definitely recommend that document verification step someone mentioned earlier. Better safe than sorry with these name issues.