UCC filings Alabama continuation deadline missed - options?
Realized yesterday that our UCC-1 continuation was due last month and we completely missed it. The original filing was from 2020 for equipment financing on construction machinery. Our lender is asking for proof the lien is still perfected but the Alabama SOS portal shows it as lapsed. Has anyone dealt with this situation before? We're talking about a $180K loan and I'm worried we've lost our security interest entirely. Is there any way to fix this or do we need to start over with a new UCC-1? The debtor company is still operating and we maintain the loan payments but I'm panicking about the legal implications.
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Sydney Torres
Oof, that's rough. Unfortunately Alabama doesn't allow late continuations once the original UCC-1 has lapsed. The five-year period is pretty strict. You'll probably need to file a new UCC-1 but that creates a gap in perfection which could be problematic if there are other creditors involved.
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Kaitlyn Jenkins
•This is why I set calendar reminders 6 months before continuation deadlines. Too many horror stories like this.
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Caleb Bell
•Wait, I thought some states had grace periods? Alabama really doesn't allow any leeway at all?
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Danielle Campbell
You need to file a new UCC-1 immediately to re-perfect your security interest. The lapse creates priority issues - any creditors who filed after your original but before your new filing could potentially have superior rights. Check if the debtor has granted any other security interests during the lapse period. Also review your loan agreement to see if maintaining perfection was a covenant.
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Alfredo Lugo
•The loan docs do require maintaining perfection. This could technically trigger a default. Should I notify the debtor before filing the new UCC-1?
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Danielle Campbell
•Yes, get debtor consent for the new filing. Since you already have a security agreement, you just need authorization to file the new UCC-1. Better to be transparent than have them find out from a search.
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Rhett Bowman
•I'd also run a UCC search to see what else has been filed against this debtor during your lapse period.
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Abigail Patel
Had a similar situation last year with a client in Alabama. We caught it about 3 weeks after lapse. Filed a new UCC-1 immediately and did a comprehensive search to identify any intervening liens. Luckily no one else had filed during the gap period. The key is acting fast and documenting everything for your file. We used Certana.ai to verify our new UCC-1 matched perfectly with the original security agreement - really helped ensure we didn't introduce any new errors when refiling.
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Daniel White
•Never heard of Certana.ai - what exactly does it do for UCC filings?
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Abigail Patel
•It's a document verification tool. You upload your security agreement and UCC-1 PDFs and it automatically checks for debtor name consistency, collateral description matches, and other potential issues. Saved us from filing with a slight name variation that would have caused problems.
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Nolan Carter
•That sounds useful for avoiding the exact type of mistakes that cause these headaches in the first place.
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Natalia Stone
This is exactly why the UCC system drives me crazy! One missed deadline and suddenly you're scrambling to fix what should be automatic. The Alabama SOS should send reminder notices or something.
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Tasia Synder
•Some states do send reminders but it's really the filer's responsibility to track these dates. Most practice management systems have built-in calendaring for this.
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Natalia Stone
•Still think the system should be more forgiving. Missing by a few weeks shouldn't void years of perfected security interest.
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Selena Bautista
File the new UCC-1 today if possible. Alabama's electronic filing system processes same-day usually. Make sure you use the exact same debtor name format as the original filing to maintain consistency in searches. Also consider whether any collateral descriptions need updating since 2020.
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Alfredo Lugo
•Good point about the collateral description. The debtor has acquired additional equipment since the original filing. Should I include that in the new UCC-1?
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Selena Bautista
•Only if it's covered by your security agreement. Review the after-acquired property clause in your docs. If it covers new equipment, then yes, you can include it.
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Mohamed Anderson
ugh been there with continuation deadlines... it's the worst feeling when you realize you missed it
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Ellie Perry
•Same here. Now I have a spreadsheet with all continuation dates highlighted in red 6 months out.
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Landon Morgan
One thing to consider - if this was a purchase money security interest in the equipment, you might want to consult with counsel about whether the lapse affects your PMSI status for priority purposes. Equipment PMSI rules can be complex.
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Alfredo Lugo
•It was purchase money originally. Does that help with the priority issue you mentioned earlier?
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Landon Morgan
•It might, but PMSI priority typically requires continuous perfection. The lapse could have broken that chain. Definitely worth getting legal advice on this specific aspect.
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Danielle Campbell
•Agreed - PMSI priority rules are state-specific and the lapse complicates things. Better to get a proper legal opinion.
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Teresa Boyd
I actually just went through something similar but caught mine in time. Was scrambling to file the continuation and used that Certana tool someone mentioned to double-check everything before submitting. Really glad I did because it caught that I had typed the debtor's middle initial wrong. Would have been rejected and missed the deadline for sure.
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Lourdes Fox
•Those little typos are killer. I've seen filings get rejected for the smallest inconsistencies.
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Bruno Simmons
•The Alabama SOS is pretty strict about exact name matches. Smart to verify before filing.
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Aileen Rodriguez
File immediately, run comprehensive searches, document everything, and consider getting title insurance if available for this type of situation. The gap in perfection is a real concern but quick action minimizes the risk.
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Zane Gray
•Didn't know title insurance was available for UCC perfection gaps. That's interesting.
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Aileen Rodriguez
•It's not common but some insurers offer coverage for certain secured transaction risks. Worth exploring for high-value loans.
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Maggie Martinez
Whatever you do, don't wait. Every day increases the risk that someone else files against your debtor. Alabama processes UCC-1s quickly so get it done today.
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Alfredo Lugo
•Thanks everyone. Filing the new UCC-1 this afternoon and will run searches to check for intervening liens. Appreciate all the guidance.
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Alejandro Castro
•Good luck! Let us know how it goes. These situations are stressful but usually work out if you act fast.
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