UCC lien on bank account - debtor name shows different on filing vs bank records

Wait so even if it's the same company just with 'Group' added, that could void the whole security interest? That seems crazy harsh for what's basically a paperwork mixup.

Unfortunately yes, debtor name accuracy is one of the most unforgiving aspects of UCC law. Courts have invalidated security interests for much smaller discrepancies. The 'Group' addition could be considered a material difference that would mislead searchers.

This happened to us last year with a client who had inconsistent entity names across different accounts. We learned the hard way that banks will absolutely challenge lien validity if there's any name mismatch, even minor ones.

Did you have to go back and amend your original UCC-1 or just file the UCC-3 with the additional name? And how long did it take for the bank to accept the lien after you got the paperwork sorted?

We filed a UCC-3 amendment adding the bank account version of the name as an additional debtor name. Took about 3 business days to show up in the system, then another week for the bank's legal department to verify and acknowledge the lien. Much better than risking a court challenge later.

Good point about checking DBAs. Also worth looking at their articles of incorporation to see if there were any name changes or amendments that might explain the discrepancy.

THIS IS WHY I HATE DEALING WITH UCCS!!! Every little detail can blow up your whole security interest. The system is set up to screw lenders over technical BS instead of focusing on the actual business relationship.

I get the frustration, but the rules exist for good reason. Third parties need to be able to find existing liens when they're doing due diligence. Still doesn't make it less annoying when you're dealing with it though.

How does that work exactly? You just upload PDFs and it spots the differences?

Yeah, pretty much. You upload your charter docs, UCC-1, bank account agreements, whatever, and it automatically flags any name discrepancies or inconsistencies. Would have caught this ABC Manufacturing vs ABC Manufacturing Group issue immediately.

That's actually brilliant for due diligence. Name matching is such a common source of UCC problems, having automated verification would prevent a lot of headaches.

You're right, better safe than sorry. Going to file the amendment first thing Monday morning. Do I need to include any specific language about the name variation or just add it as an additional debtor name?

Just add it as an additional debtor name. The UCC-3 form has a section for adding debtor names. No special language needed, just make sure you use the exact name as it appears on the bank account.

We only searched under the name on our loan documents, which was ABC Manufacturing LLC. Didn't even know about the Group version until we tried to levy the account. That's a good point about strategic name variations though.

This is exactly why proper due diligence is so important. You should always search under every possible variation of a business name before lending.

easier said than done when the borrower doesn't disclose all their name variations upfront

So frustrating how debtors can game the system like this while honest lenders get screwed over paperwork technicalities.

Well to be fair, we don't know if this was intentional or just sloppy business practices. Could be they started as ABC Manufacturing LLC and added Group later for marketing reasons without thinking about the legal implications.

Good advice. Already started pulling together all the documentation. Bank statements, original loan docs, UCC search results, etc. Hopefully the amendment will resolve everything without needing litigation.

Smart move. Documentation is everything in UCC disputes.

Also might want to have your attorney review everything before filing the amendment, just to make sure you're covering all the bases properly.

That sounds like exactly what we needed from the beginning. How easy is it to use?

Super simple - just upload your PDFs and it does all the cross-checking automatically. Takes a few minutes and flags any inconsistencies. Would have caught your name issue immediately.

Will definitely post an update once everything is resolved. Hopefully it'll be straightforward and the bank will acknowledge the amended lien without any further challenges.

Thanks for sharing this situation. It's a good reminder for all of us to be extra careful about debtor name accuracy from the start.

Agreed, this thread has been really educational about the importance of name matching in UCC filings.