We want to change our bank’s name. Would that affect our UCC financing statements? Do we need to refile all of our statements with the bank’s new name?

Generally, you are not required to update your financing statements. On a case-by-case basis, the UCC does recognize that equitable principles in a particular case could overtake this general rule. Such cases likely would be rare, and we would note that even after your name change, potential creditors would be able to identify that a prior lien exists, irrespective of the legal name of the secured party on your financing statements.

If your bank wishes to file amendments updating the secured party name on its financing statements, some states do permit bulk filings to amend several financing statements with one filing. However, we have confirmed with the Illinois Secretary of State’s office that this bulk filing function is unavailable in Illinois.

For resources related to our guidance, please see:

Illinois UCC, 810 ILCS 5/9-506 (“(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.”)
Illinois UCC, 810 ILCS 5/9-506 (“(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.”)
Official Comments, UCC § 9-506, Comment 2 (“ . . . In addition to requiring the debtor’s name and an indication of the collateral, Section 9-502(a) requires a financing statement to provide the name of the secured party or a representative of the secured party. Inasmuch as searches are not conducted under the secured party’s name, and no filing is needed to continue the perfected status of security interest after it is assigned, an error in the name of the secured party or its representative will not be seriously misleading. However, in an appropriate case, an error of this kind may give rise to an estoppel in favor of a particular holder of a conflicting claim to the collateral. See Section 1-103.”)
Illinois UCC, 810 ILCS 5/1-103 (“(b) Unless displaced by the particular provisions of the Uniform Commercial Code, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, and other validating or invalidating cause supplement its provisions.”)