THE INITIAL FINANCING STATEMENT

Question 1

Sufficiency of Filing Statement

The Initial Financing Statement

Answer 1

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

Question 2

Minor errors and omissions

The Initial Financing Statement

Answer 2

A financing statement substantially satisfying the requirements is effective even if it has minor errors and omissions, unless the errors or omissions make the financing statement seriously misleading

Question 3

Financing statement seriously misleading

The Initial Financing Statement

Answer 3

A financing statement that fails to sufficiently provide the name of the debtor is seriously misleading

Question 4

Financing statement not seriously misleading - search logic

The Initial Financing Statement

Answer 4

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 to sufficiently provide the name of the debtor, the name provided does not make the financing statement seriously misleading