UCC filing rejected - bank account mismatch causing problems

This is exactly right. I've seen so many filings get rejected because people use the name from bank statements instead of the official state records.

But what if the bank account name is what they actually do business under? Won't that create problems down the road if we need to collect on the collateral?

The UCC filing establishes your security interest based on the legal entity. When you collect, you can always show that ABC Mfg LLC is just an abbreviated version of ABC Manufacturing LLC through bank records and business operations.

Check the Secretary of State database for your state. That's always going to be the definitive source for the legal entity name. Everything else is just trade names or abbreviations.

Ok that makes sense. So even if their main operating account says something different, I should ignore that for UCC purposes?

Exactly. The bank account name is irrelevant for UCC filing purposes. What matters is the name on the public organic record.

That sounds really useful. Did it help you figure out which name to use for the actual filing?

Yeah, it cross-references everything and shows you exactly which name matches the state records. Saved us from getting rejected like you did.

How accurate is it? I've been manually checking everything but it's so time consuming when you have multiple entities.

Pretty solid from what I've seen. It caught stuff I totally missed, especially when dealing with LLCs that have really similar names but slight differences.

I feel your pain but the rules are actually pretty clear once you understand them. The legal name gives you the broadest protection.

Clear for lawyers maybe! For the rest of us trying to run a business it's a nightmare of technicalities and gotcha rules.

So you never had issues collecting even though the bank account was under a different name?

Nope. Banks deal with this all the time. As long as you can show it's the same entity through documentation, they'll work with you.

Good to know. I was worried about exactly this scenario.

No, the collateral description should reference the types of assets, not specific account names. Something like 'all accounts receivable, equipment, and general intangibles' covers everything regardless of what name the debtor operates under.

That's what I thought but wanted to double check. Thanks!

You're absolutely right. I'm refiling today with the legal name. Better to have some protection than none at all.

Smart move. I've seen deals go sideways because people got paralyzed trying to get every detail perfect instead of just getting something filed.

We're in Ohio. They seem pretty strict based on this rejection notice.

Yeah Ohio doesn't mess around with UCC filings. Definitely stick with the exact legal name from their database.

Good practice for the loan docs but remember the UCC filing itself should still only use the legal entity name. Don't want to confuse the filing office with multiple names.

Right, I meant just for the underlying loan documentation. UCC should definitely be clean with just the one legal name.

Will do. Planning to refile tomorrow morning with the exact legal name from the Secretary of State database.

Good luck! Should go through fine now that you know the right approach.

How much does something like that cost? Is it worth it for smaller operations?

Haven't looked at pricing honestly, but the time it saves catching mistakes before filing rejections probably pays for itself pretty quick.

This is really helpful advice, especially about keeping the Secretary of State search results as documentation. I never thought about that but it makes total sense to have that paper trail. Quick question - when you say the underlying security agreement had the wrong debtor name, did that actually void the security interest or was it just a hassle to work through during collection?