Top 5 UCC Filing Mistakes
5. Not checking the appropriate real estate boxes on fixture filings.
This is especially problematic in the jurisdictions of Louisiana, Georgia, Oklahoma, and D.C. where UCC filings commingle with fixture filings. If you don’t have the appropriate boxes checked and legal descriptions attached, your fixture filings may be indexed as UCC financing statements related to personal property.
4. Missing jurisdiction-specific requirements.
A handful of states require that you include specific language related to collateral or tax requirements and the national UCC form doesn’t prompt you to include this information. Omission, however, can lead to rejection by the filing office.
3. Using outdated forms.
The current national forms revised in 2011 are accepted in all jurisdictions with the exception of New York, while the previous forms are widely rejected. Some states have created their own jurisdiction-specific forms.
2. Filing in the wrong jurisdiction.
For the UCC novice, it’s easy to assume that the jurisdiction for filing is the central filing office in the state indicated in the debtor’s mailing address. The appropriate index for filing with respect to personal property, however, is the central filing office (or index) in the state where the debtor is located. A debtor who is an individual is ‘located’ where they reside while a debtor that is a registered entity is located in the state of organization.
1. Specifying a debtor name that includes additional information or a DBA name.
Additional verbiage beyond the legal name of the entity is liable to cause a hidden lien that would be deemed ineffective. Capitol Services, Inc., a Texas Corporation, would be an inappropriate presentation of a debtor name. Capitol Services, Inc. D/B/A Capitol Corporate Services would also be inappropriate. Keep box 1a limited to the legal name of the entity: Capitol Services, Inc.