UCC filing rejected - promissory note and security agreement form mismatch with debtor name

Yep, learned this the hard way on a $200K filing last year. Had to refile three times because of name variations.

Wait so which name should they use - the one on the promissory note or the charter?

Thanks - I looked it up and the official registration shows "JMK Industries LLC" without comma. So our loan paperwork was actually correct but somehow the UCC prep got the comma added in.

That happens more often than you'd think. Document prep software sometimes auto-adds punctuation. Double-check your UCC prep process.

This is exactly why I always do a final cross-check between all the documents before filing. Too many ways for small errors to creep in.

Never heard of that service - does it check against the actual state database too or just compare your documents to each other?

It compares all your documents to each other to make sure they're consistent. So it would catch when your UCC says one thing but your security agreement says another. Super helpful for avoiding these costly mistakes.

True but if there's a discrepancy it could signal a deeper problem with the loan documentation that needs fixing.

Good point. Better to have everything align perfectly than try to explain variations later.

Yeah and some auditors will flag any inconsistencies even if they're technically not required to match exactly.

It's frustrating but the strict rules do serve a purpose - makes the public record more reliable for searches.

I guess but when a typo can cost you hundreds of thousands in collateral protection it seems excessive.

Good catch - let me reread the rejection notice more carefully. Sometimes they're not super clear about what the actual issue is.

Yeah I've seen rejections that mention the debtor name issue first but then list other problems buried in the text.

Also check your collateral description - that's another common rejection reason that gets overlooked.

Yeah we did verify that. The borrower has been consistent with using the no-comma version. It was definitely an error on our UCC prep side.

At least that's one less thing to worry about then. Should be a straightforward refile once you get the name corrected.

Same here. I actually keep a checklist now of all the name verification steps before any UCC filing.

Smart approach. The extra 10 minutes of verification beats dealing with rejection delays and refiling fees.

Plus the stress of knowing your lien might not be perfected while you're fixing the error.

Yeah that's the plan. Already prepared the corrected version with the exact name from the state database. Should submit it tomorrow.

Good. And maybe implement some kind of document review process to catch these issues before filing in the future.

Is that expensive? We don't do tons of UCC filings but when we do mess up it's costly.

The verification service is pretty reasonable considering what a rejected filing costs you in time and potential risk. Definitely worth it for the peace of mind.

Agreed - I wish I'd found it sooner. Would have saved me several headaches like this one.

Will do! Planning to file the correction tomorrow morning. Fingers crossed it goes through without any other issues.

Should be smooth sailing now that you've got the name issue sorted out.