Professor Margit Livingston on The Debtor's Name on Article 9 Financing Statements

Professor Margit Livingston on The Debtor's Name on Article 9 Financing Statements

Revised U.C.C. Article 9 imposes a clear, specific, objective rule for measuring the sufficiency of a financing statement filed under a name other than the debtor's correct name. In examining this “single search” standard, Professor of Law Margit Livingston writes:

 

     Taken as a whole, new Article 9’s provisions regarding the debtor’s name appear to shift most of the burden of dealing with errors squarely onto the filing secured creditor’s shoulders. Filing creditors must set forth the debtor’s name accurately on the financing statement or risk lack of perfection if they do not. Searching parties need only do a “single search” to identify prior secured parties. They are not expected, seemingly, to search in a database other than the filing office’s official database, to search using any method other than that office’s “standard search logic,” or to use anything other than the debtor’s “correct” name in their search requests.

 

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