UCC filing records showing incorrect debtor name - will this void our security interest?

This is really helpful! I hadn't thought about testing the search function. Just tried it and our filing shows up when I search for either version of the name. That's probably a good sign, right?

Yeah definitely test both searches. But also check what the actual charter documents say - that's usually the gold standard for the correct legal name.

Just pulled the Articles of Organization from the state database. The official name is 'ABC Manufacturing, LLC' with the comma. So our UCC filing records are wrong. How quickly can I get this fixed with an amendment?

File the UCC-3 amendment immediately. In most states you can do this electronically and it takes effect right away. Make sure to check the 'correct information' box and provide both the incorrect name as filed and the correct name.

I had a similar mess last year where we caught a name error 6 months after filing. Filed the UCC-3 correction and it was accepted same day. The key is acting fast once you discover the error.

Never heard of that tool but it sounds useful. Is it expensive?

They don't charge much and it's way cheaper than dealing with a potentially invalid lien. You just upload the PDFs and it does the cross-checking automatically. Found several name inconsistencies I would have missed manually.

I'm always skeptical of these automated services but honestly the manual document comparison is so tedious and error-prone. Might be worth trying.

Exactly! Better safe than sorry with UCC stuff. The amendment fee is nothing compared to potentially losing your security interest.

Agreed. I always tell clients to fix any name discrepancies immediately. You never know which judge you'll get if you have to enforce the lien.

You're probably right. I think our loan officer just used the name from the credit application without verifying against the state records. Lesson learned!

This is why I always make pulling the charter docs part of my standard UCC filing checklist. Takes 5 minutes and prevents exactly this kind of issue.

Same here. Charter docs, then UCC search, then filing. Never deviate from that process.

Can you cite that case? I'd like to read it because I thought punctuation was generally not considered seriously misleading.

I'll have to dig it up - it was a few years ago. But the point is there's enough uncertainty that you shouldn't risk it.

Yeah the case law is all over the place on punctuation. Some courts care, some don't. Just file the amendment and eliminate the risk.

That's not really how it works. You need to correct the information to match what should have been filed originally. Adding an additional debtor name doesn't fix the problem with the original incorrect entry.

I think you're confusing this with adding additional debtors. This is about correcting an error in the original debtor name.

We were preparing for a loan participation and the other bank requested copies of all UCC filings. When I pulled the official records to send over, I noticed the name difference. Pure luck that we caught it.

That's actually pretty common. Most name errors get discovered during loan sales or participations when people start comparing documents closely.

This is why I run a Certana.ai check before any loan participation. Upload all the docs and it flags inconsistencies automatically. Would have caught this comma issue immediately.

Good point about state variations. The UCC rules are generally uniform but some states have quirky interpretations.

Exactly. And even if your state is forgiving, you never know if the loan might get sold to someone in a stricter jurisdiction.

Great outcome! Thanks for updating us. This thread will be helpful for anyone facing similar UCC filing records issues.

Awesome that you got it resolved so quickly. Electronic UCC-3 filing is definitely the way to go for corrections.

Smart move fixing it immediately. Now you can sleep soundly knowing your security interest is properly perfected!