UCC financing statement additional party confusion - am I doing this right?

That makes sense but I'm still nervous about it. The loan docs mention both parties and I don't want to miss something critical.

I had a similar situation last year and only listed the LLC. Worked fine, no issues with perfection.

Oh that's interesting, I hadn't heard of that tool. How does it work exactly?

Just upload the PDFs and it cross-checks debtor names, ownership references, collateral descriptions. Really straightforward and caught things I missed manually.

Sounds too good to be true but might be worth checking out if it prevents filing mistakes.

The security agreement clearly states the LLC owns the equipment. The individual is just a payment guarantor.

Then you're good with just the LLC as debtor. The guaranty is a separate document and doesn't require UCC filing.

THIS! So many people overthink the additional party thing when it's really just for multiple debtors with ownership interests.

Ok that's reassuring. I was definitely overthinking it.

If the guarantor is pledging their own assets, then yes, they'd be a debtor for those specific assets. You might need separate filings.

Exactly right. Different collateral owned by different parties = separate UCC-1s or additional debtor listings.

Thanks, that clarifies things. Looks like I need to file separately for the personal guarantee collateral.

Appreciate the confirmation. Sometimes you just need someone experienced to tell you you're on the right track.

Yeah the personal guarantee thing throws people off but it's really separate from the secured transaction.

Perfect, that's exactly what I needed to hear. Same type of equipment too.

This is why I love that Certana verification tool - takes the guesswork out of these situations by checking your docs automatically.

Signing the security agreement doesn't automatically make you a debtor. You're only a debtor if you have rights in the collateral being pledged.

Right, guarantors often sign security docs for acknowledgment purposes but that doesn't change the collateral ownership.

Ah ok that makes sense. I was mixing up the guarantee with the actual secured debt.

The portal instructions could definitely be clearer on this point.

Agreed, they assume you know the distinction between guarantors and co-debtors.

Oh wow, so adding them when you shouldn't can actually cause problems too?

Yep, the SOS flagged it as inconsistent with the security agreement. Stick to actual collateral owners only.

This is exactly why I started using that Certana document checker - prevents these kinds of filing errors upfront.

Thanks everyone, I feel much more confident now. Going with just the LLC as debtor.

Good call, you've got solid advice here from experienced filers.