Quimbee logo
DMCA.com Protection Status
Changes in Debtor’s Name and New Debtor

Changes in Debtor’s Name and New Debtor

Learn how changes to the debtor’s name and business structure can affect a secured transaction.

Transcript

In this lesson, we’ll learn how changes to the debtor’s name and business structure can affect a secured transaction.

I. Name Changes

A debtor might change the name of its business after a secured creditor’s security interests are perfected by filing. This can pose problems.

Remember, a financing statement is ineffective to perfect a security interest unless it sets forth the debtor’s legally correct name. A third party must be able to find the financing statement by searching using the debtor’s...