The Florida Supreme Court recently rendered a decision impacting lenders that rely on UCC-1 financing statements to protect their security interests in personal property collateral.
The decision holds that there is no safe harbor for mistakes on a UCC-1 financing statement as to a debtor’s name because there is no standard search logic in the Florida Secured Transaction Registry. In other words, there is zero tolerance for errors as to the debtor’s name on a UCC-1 financing statement. We recommend that lenders check their protocols and procedures to ensure the debtor’s name is correctly stated on their UCC-1 financing statements.1944 Beach Boulevard, LLC, Appellant, v. Live Oak Banking Company, Appellee. Supreme Court of Florida. Case No. SC21-1717. August 25, 2022, 47 Fla. L. Weekly S193a.