Class 6 Secured Transactions, Fall, 2018 Perfection: Debtor’s Name 11/21/2018 Class 6 Secured Transactions, Fall, 2018 Perfection: Debtor’s Name Randal C. Picker James Parker Hall Distinguished Service Professor of Law The Law School The University of Chicago Copyright © 2001-18 Randal C. Picker. All Rights Reserved.

9-502 (a) [Sufficiency of financing statement.] 11/21/2018 9-502 (a) [Sufficiency of financing statement.] Subject to subsection (b), a financing statement is sufficient only if it: (1) provides the name of the debtor; (2) provides the name of the secured party or a representative of the secured party; and (3) indicates the collateral covered by the financing statement. November 21, 2018

9-503: Name of Debtor (a) [Sufficiency of debtor’s name.] 11/21/2018 9-503: Name of Debtor (a) [Sufficiency of debtor’s name.] A financing statement sufficiently provides the name of the debtor: (1) except as otherwise provided in paragraph (3), if the debtor is a registered organization … , only if the financing statement provides the name that is stated to be the registered November 21, 2018

11/21/2018 9-503: Name of Debtor organization’s name on the public organic record most recently filed with or issued or enacted by the registered organization’s jurisdiction of organization which purports to state, amend, or restate the registered organization’s name; November 21, 2018

11/21/2018 9-503: Name of Debtor: Alt A (4) subject to subsection (g), if the debtor is an individual to whom this State has issued a [driver’s license] that has not expired, only if the financing statement provides the name of the individual which is indicated on the [driver’s license]; November 21, 2018

11/21/2018 9-503: Name of Debtor: Alt A (5) if the debtor is an individual to whom paragraph (4) does not apply, only if the financing statement provides the individual name of the debtor or the surname and first personal name of the debtor; and November 21, 2018

9-503: Name of Debtor (c) [Debtor’s trade name insufficient.] 11/21/2018 9-503: Name of Debtor (c) [Debtor’s trade name insufficient.] A financing statement that provides only the debtor’s trade name does not sufficiently provide the name of the debtor. November 21, 2018

9-506: Errors or Omissions (a) [Minor errors and omissions.] 11/21/2018 9-506: Errors or Omissions (a) [Minor errors and omissions.] A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. November 21, 2018

11/21/2018 9-506: Errors or Omissions (b) [Financing statement seriously misleading.] Except as otherwise provided in subsection (c), a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 9‑503(a) is seriously misleading. November 21, 2018

11/21/2018 9-506: Errors or Omissions (c) [Financing statement not seriously misleading.] If a search of the records of the filing office under the debtor’s correct name, using the filing office’s standard search logic, if any, would disclose a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 9‑503(a), the name provided does not make the financing statement seriously misleading. November 21, 2018

Tyringham Holdings, Inc. 11/21/2018 First Case Legal Name Tyringham Holdings, Inc. Filed Name Tyringham Holdings Is the financing statement effective? November 21, 2018

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Apply the VA Search Logic Search on the legal name: “Tyringham Holdings, Inc.” Ignore capitalization, spaces and punctuation Ignore certain noise words: none here given VA rule Converted to “tyringhamholdingsinc” Does that match “tyringhamholdings”? November 21, 2018

First Case Analysis That would be “TH, Inc.” and not just “TH” 11/21/2018 First Case Analysis Debtor is a registered organization per 9-503(a)(1) That would be “TH, Inc.” and not just “TH” November 21, 2018

First Case Consider 9-506(c): 11/21/2018 First Case Consider 9-506(c): Does a search run under the debtor’s correct name using the filing office’s standard search logic find the financing statement? If yes, the filed name doesn’t in and of itself making the financing statement seriously misleading November 21, 2018

11/21/2018 First Case If no, then 9-506(b) applies and the financing statement is seriously misleading and the statement is ineffective under 9-506(a) Searching on “TH, Inc.” using the standard search logic did not find “TH” Result The secured creditor is unperfected November 21, 2018

Jim Ross Tires, Inc. dba HTC Tires & Automotive Centers 11/21/2018 Second Case: AmPac FS Legal Name Jim Ross Tires, Inc. Filed Name Jim Ross Tires, Inc. dba HTC Tires & Automotive Centers Is the financing statement effective? November 21, 2018

Second Case: Tradition Bank FS 11/21/2018 Second Case: Tradition Bank FS Legal Name Jim Ross Tires, Inc. Filed Name Jim Ross Tire, Inc. Is the financing statement effective? November 21, 2018

Third Case Legal Name PTM Technologies, Inc. Filed Name 11/21/2018 Third Case Legal Name PTM Technologies, Inc. Filed Name PTM Tecnologies, Inc. Is the financing statement effective? November 21, 2018

NC UCC Searches Here https://www.sosnc.gov/online_services/search/by_title/_uniform_commercial_code November 21, 2018

Fourth Case Legal Name ISC, Inc. Filed Name ISC, Inc . 11/21/2018 Fourth Case Legal Name ISC, Inc. Filed Name ISC, Inc . Is the financing statement effective? November 21, 2018

Wisconsin Regs Search Logic https://docs.legis.wisconsin.gov/code/admin_code/dfi/dfi_ccs/5 November 21, 2018

Fifth Case Legal Name Brooks L. Dickerson Filed Name Louie Dickerson 11/21/2018 Fifth Case Legal Name Brooks L. Dickerson Filed Name Louie Dickerson Is the financing statement effective? November 21, 2018

Sixth Case Legal Name Ronald Markt Nay Filed Name Ronald Mark Nay 11/21/2018 Sixth Case Legal Name Ronald Markt Nay Filed Name Ronald Mark Nay Is the financing statement effective? November 21, 2018

Indiana UCC Searches Here http://www.in.gov/sos/business/2472.htm November 21, 2018

Indiana Admin Rules Rule 501.1 “A search request must set forth the full correct name of a debtor or the name variant desired to be searched and must specify whether the debtor is an individual or an organization. The full name of an individual shall consist of a first name or initial, a middle name or initial, and a last name.” November 21, 2018

Indiana Admin Rules Rule 501.1 “A search request may be submitted with no middle name or initial. If only a single name is presented (e.g. ‘Cher’) it will be treated as a last name and will return only names having the same last name which have no first name and no middle initial. A search request will be processed using the name in the exact form it is submitted.” November 21, 2018

What Is the Solution to This? If you can afford it One person files FS After filed, second person runs search Did you find the financing statement? November 21, 2018