For the second installment in our series on The Perplexing World of Uniform Commercial Code Demystified, we’d like to talk about the “proper” way to complete the debtor name on a UCC-1 Financing Statement.
Perfecting the name of an organization or individual in a UCC-1 Financing Statement is very important in the protection of your security interest. Unperfected UCC filings can be deceptive and catastrophic.
If the debtor is an organization, the name listed in 1a should match the last filed public record as filed with the Secretary of State where the entity is formed. For instance, if the corporation is filed under the name: ABC Services, Inc. the name in 1a should be listed as the same. It should not be listed as: ABC Services Corp. If the organization files for a name change, the UCC-1 should be updated to reflect the change in the debtor name, via a UCC-3 Amendment.
If the debtor is an individual, the name listed in 1b should match the individual’s unexpired driver’s license or ID card. If the individual does not have one of these two identifications, the UCC-1 should list the debtors first and last name. For instance, if the driver’s license or ID card lists the person’s name as Karen Elizabeth Elliott, the UCC-1 should include first, middle and last name. It should not be listed as: Karen Elliott or Karen E. Elliott.
You can file a UCC and request a Search to Reflect nationwide with us today by sending us your requests to Orders@incserv.com. Please give us a call if you have any questions or would like additional information. Keep an eye out for the next installment on who prepares a UCC filing.
Karen Elliott, Assistant Vice President Client Development