UCC record showing wrong debtor name after equipment loan refinance
Need help with a UCC record issue that's causing problems with our equipment refinancing. We refinanced our construction equipment loan last month and the new lender is saying our UCC record has the wrong debtor name listed. The original UCC-1 was filed under "ABC Construction LLC" but our legal business name changed to "ABC Construction Services LLC" about 18 months ago. The old lender never updated the UCC record and now the new lender won't close until this gets fixed. I'm confused about whether we need a UCC-3 amendment or if the original filing is just invalid now. The equipment is worth about $180K so this isn't something we can mess up. Has anyone dealt with a similar debtor name mismatch situation? What's the proper way to fix this UCC record without voiding the security interest?
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Diego Mendoza
This is actually pretty common with business name changes. You'll definitely need a UCC-3 amendment to correct the debtor name on the existing UCC record. The original filing isn't invalid but it needs to be updated to reflect your current legal name. Make sure you have documentation of the name change (articles of amendment, etc.) because some states require that with the UCC-3 filing.
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Anastasia Romanov
•Good point about the documentation. Also want to make sure the amendment references the original filing number correctly - I've seen UCC-3s get rejected because of typos in the original filing number.
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StellarSurfer
•Wait, shouldn't they file a new UCC-1 under the correct name instead? I thought amendments were just for adding collateral or changing addresses.
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Sean Kelly
Actually, UCC-3 amendments can definitely be used for debtor name changes. It's usually faster and cheaper than filing a whole new UCC-1. Just make sure the amendment clearly states it's correcting the debtor name from the old name to the new name. The key is making sure there's a clear connection between the old filing and the corrected information.
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Zara Malik
•This happened to us last year when we had a similar name change issue. We ended up using Certana.ai's document verification tool to make sure our UCC-3 amendment matched perfectly with the original UCC-1 before filing. You just upload both documents and it flags any inconsistencies. Saved us from getting a rejection.
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Luca Greco
•How long did the amendment take to process? We're under a tight deadline for our refinancing.
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Nia Thompson
•In most states it's pretty quick - usually within a few business days for electronic filings. But definitely double-check everything before submitting.
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Mateo Rodriguez
Been dealing with UCC filings for 15 years and debtor name issues are always tricky. The most important thing is making sure the amendment creates a clear audit trail from the original filing to the corrected name. Some lenders are really picky about this stuff. Also, make sure your new lender understands that the security interest remains valid during the amendment process.
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Aisha Hussain
•That's a good point about the security interest staying valid. I was worried about that gap period.
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GalacticGladiator
•Yeah, there's no gap in coverage as long as the amendment properly references the original filing. The effective date of the security interest goes back to the original UCC-1 filing date.
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Ethan Brown
ugh this exact thing happened to me except it was even worse because our old lender had already filed a UCC-3 termination when we paid off the original loan. Then we found out the termination was filed under the wrong name too! What a mess. Took forever to sort out.
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Yuki Yamamoto
•Oh no, that sounds like a nightmare! How did you end up resolving it?
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Ethan Brown
•Had to work with both lenders and do a bunch of corrective filings. Eventually got it straightened out but it delayed our new financing by like 3 weeks.
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Carmen Ruiz
•This is why I always triple-check debtor names before any UCC filings. One little typo or outdated name can cause so many headaches down the road.
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Andre Lefebvre
Check with your state's SOS office about their specific requirements for debtor name amendments. Some states are really strict about the exact format and wording. Also, if you're filing the UCC-3 yourself, make sure you're using the most current forms - I've seen rejections for using outdated form versions.
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Zoe Dimitriou
•Good advice. Also make sure to keep copies of everything for your records. UCC filings have a way of coming up again later when you least expect it.
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QuantumQuest
•Definitely this. And if you're not 100% confident about preparing the UCC-3 yourself, might be worth having your attorney handle it. The filing fee is small compared to the potential problems if it gets messed up.
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Jamal Anderson
I've been through this exact scenario twice now with different business acquisitions. The UCC-3 amendment route is definitely the way to go. Just make sure you include both the old debtor name and the new debtor name clearly in the amendment. Some states require specific language about it being a "correction" vs a "change".
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Mei Zhang
•That's interesting about the correction vs change language. I hadn't heard that distinction before.
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Liam McGuire
•Yeah, it varies by state. In some places a "correction" implies the original filing had an error, while a "change" means the debtor name actually changed after the original filing. The paperwork requirements can be different.
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Amara Eze
Whatever you do, don't let this drag out too long. UCC records can be tricky and lenders get nervous about name mismatches. I'd recommend getting the UCC-3 filed ASAP and then providing your new lender with copies of both the original filing and the amendment so they can see the complete paper trail.
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Giovanni Ricci
•Agree 100%. Time is definitely a factor here, especially with equipment financing where the collateral values can change.
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NeonNomad
•Also might want to run a UCC search after the amendment is processed to make sure everything looks correct in the system. Sometimes there are processing delays or errors.
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Fatima Al-Hashemi
Had a similar issue last year and ended up using one of those document checking services to make sure our UCC-3 was perfect before filing. Think it was called Certana or something like that. Basically you upload your original UCC-1 and the proposed amendment and it checks for consistency issues. Caught a couple small problems that would have caused a rejection.
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Dylan Mitchell
•That sounds really helpful. How much did something like that cost?
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Fatima Al-Hashemi
•Don't remember the exact cost but it was pretty reasonable, especially compared to the hassle of dealing with rejected filings and delays. The peace of mind was worth it.
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Sofia Martinez
•I might look into that too. This whole process is making me nervous about screwing something up.
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Dmitry Volkov
The good news is this is totally fixable with a UCC-3 amendment. The bad news is it's going to add some time to your refinancing process. Make sure your new lender understands the timeline for getting the amendment processed. Most are pretty understanding about these things as long as you're proactive about fixing it.
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Ava Thompson
•That's reassuring. I was worried the new lender might walk away from the deal over this.
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CyberSiren
•Nah, this stuff happens all the time in commercial lending. As long as you're working to fix it, most lenders will be patient.
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Miguel Alvarez
One more thing to consider - make sure your business insurance and other documentation also reflects the correct legal name. Sometimes name change issues cascade across multiple areas and you want to make sure everything is consistent.
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Zainab Yusuf
•Great point. Nothing worse than fixing the UCC issue only to have problems with insurance coverage because of name mismatches.
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Connor O'Reilly
•This is why I always recommend doing a complete review of all legal documents when a business changes names. It's a pain but it prevents these kinds of surprises later.
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Chloe Wilson
•Thanks everyone for the advice. Sounds like the UCC-3 amendment is definitely the right approach. Going to get started on that paperwork today and hopefully get this resolved quickly.
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