UCC perfection deadline missed - can I still file continuation or is my security interest gone?

This is exactly right. The gap in perfection is permanent and can't be cured retroactively. Any creditor who filed during that 3-month window would have priority over your re-perfected lien.

Wait, so they completely lose their security interest? That seems harsh for just missing a deadline.

Not completely lost - they can re-perfect with a new UCC-1, but they lose the priority position they had from 2020. It's like starting over from scratch priority-wise.

Already working on it. Should I use the exact same collateral description as the original UCC-1 or update it to reflect current equipment?

Use the same description if the collateral hasn't changed significantly. Don't complicate things with unnecessary revisions right now.

I've checked multiple times. Original filing was March 15, 2020, so it definitely lapsed in March 2025. No grace period in our state unfortunately.

Okay, then you're definitely dealing with a lapse. Focus on minimizing the damage with immediate re-filing.

This is why I set calendar reminders 6 months in advance for all my continuation deadlines. One missed deadline can cost millions in priority.

That sounds useful. Did it help with ensuring the debtor name matched exactly? I'm worried about any technical rejections right now.

Yes, it flagged that our debtor name in the new filing had a slight variation from the original - just a comma placement difference but enough to potentially cause issues. Fixed it before filing.

How long did the verification process take? Sounds like it could add delays when you need to file urgently.

It's actually very fast - just upload your PDFs and it automatically compares everything. Took maybe 10 minutes and potentially saved days of back and forth with the filing office.

I get the frustration but the deadlines exist for a reason. Other creditors need to be able to rely on the public records system.

I understand that but there should be some reasonable cure period for good faith mistakes.

Some states actually do have short grace periods but most don't. It's definitely a harsh system.

Good point. I'll contact our insurance broker. This was definitely legal counsel's responsibility per our retainer agreement.

Professional liability insurance for the lawyers who missed the deadline should also be in play here.

Already ordered the search. Results should be back tomorrow morning. Fingers crossed it's clean.

That's smart. If no one else filed, the practical impact is minimal even though technically you lost the 2020 priority date.

What if someone did file during the gap? Does that automatically kill the deal?

Depends on what kind of lien and the amount. A small judgment might not be deal-breaking on an $850K secured loan, but another major secured lender would be problematic.

I have emails from 2024 confirming they were handling all UCC maintenance including continuations. Definitely documenting everything.

Good. That evidence will be crucial if you need to pursue recovery from their malpractice carrier.

That's actually not a bad compromise if the borrower is willing. Better than calling the loan.

I might suggest that approach if the UCC search shows other liens filed during the gap period.

At this point I'm willing to try anything that prevents additional delays. Every day matters for priority purposes.

Exactly. And when you're dealing with a lapse situation, you can't afford any filing errors that would push you back further.

Does it work with electronic filings or just paper documents?

Works with PDFs so it handles both. Most state systems give you PDF copies of electronic filings anyway.

Great outcome given the circumstances! Glad the search came back clean.

This is why you always file immediately after discovering a lapse. Every day of delay increases the risk.

What errors did the document verification catch? Curious what to watch out for in my own filings.

One was a middle initial included in the new filing that wasn't in the original. The other was slightly different formatting in the collateral description. Small stuff but enough to potentially cause rejection.