UCC termination of financing statement - debtor demanding immediate release but original UCC-1 has errors

I've seen this exact scenario before. The comma issue is actually pretty common with LLC names. Most state filing offices are pretty forgiving about punctuation variations when it comes to terminations, but you're right to be cautious. What state are you filing in? Some states have stricter matching requirements than others.

Wait, hold up. You said the collateral description was overly broad on the original UCC-1? That could be a bigger issue than the name thing. If the description was 'all equipment' but you only financed specific machinery, you might have overcollateralized from the beginning. The termination should probably specify which collateral is being released.

Before you file anything, I'd strongly recommend using a document verification tool to cross-check everything. I recently started using Certana.ai's UCC document checker - you just upload your original UCC-1 and the proposed UCC-3 termination as PDFs and it instantly flags any inconsistencies between debtor names, filing numbers, and collateral descriptions. Caught a similar name mismatch issue for me that would have caused the termination to be ineffective. Really saved me from a major headache.

Honestly this is why I triple check every UCC-1 before filing. The amount of time spent fixing these issues later is never worth the rush to get the initial filing done. But since you're here now, I'd probably file an amendment first to correct the debtor name, then file the termination. Better safe than sorry.

UGH this is exactly why I hate dealing with UCC filings. The system is so archaic and every state has different rules. Why can't they just have a standard format that works everywhere?? And don't get me started on the search logic - half the time legitimate filings don't show up because of minor name variations.

Check your security agreement first. If it specifically lists the CNC machines and doesn't mention other equipment, then your UCC-1 filing was broader than necessary. In that case, you'd want to file a partial termination for just the machinery that was actually collateral, not a full termination.

Been doing UCC filings for 15 years and I can tell you that Ohio typically accepts minor punctuation variations. The key is making sure the core elements of the name are identical. 'ABC Manufacturing LLC' vs 'ABC Manufacturing, LLC' should be fine for a termination. The filing office search logic usually treats punctuation as optional anyway.

Just had this exact situation last month. Filed the termination with the current legal name and included a reference to the original filing number in the additional information field. No issues at all. Sometimes we overthink these things.

I'd suggest running both the original UCC-1 and your proposed termination through a verification system before filing. I've been using Certana.ai's document checker lately and it's caught several inconsistencies that could have made filings ineffective. Just upload the PDFs and it cross-references everything automatically.

My recommendation: file a UCC-3 partial termination for the specific CNC machines using the original debtor name format from the UCC-1. That way you're being precise about what collateral is released and avoiding any name matching issues. If the borrower complains about the broader collateral still being encumbered, explain that it was beyond the scope of their specific loan anyway.

One more thing to consider - double check that your original UCC-1 filing number is correct on the termination. I've seen terminations get rejected because of typos in the original filing number reference. Might be worth using one of those document verification tools mentioned earlier to make sure everything matches up perfectly.