Pub. 2 2011 Issue 1

www.wvbankers.org 12 a safe harbor if a lien search under the debtor’s “correct” name reveals the filing under an erroneous name. The undisputed evidence showed that a search of the Nebraska Secretary of State’s records using the debtors’ correct name, “EDM Corporation” did not reveal Hastings’ filing. There- fore, Hastings’ addition of “d/b/a EDM Equipment” to the debtor’s name field on the financing statement made the document seriously misleading, and Hastings’ failed to per- fect its lien on the ambulance. The Eighth Circuit’s decision in EMD Corporation illustrates that a creditor may fail to properly perfect its security interest if it includes too much information on a financing statement. The statutes considered by the Eighth Circuit in this decision are similar to the UCC provisions adopted by the State of West Virginia and the majority of other states. In light of this decision, we recommend that creditors review the filing rules in every state where they operate and make sure that they correctly identify the debtor on every financing statement they file. We also recommend that creditors run a post-clos- ing lien search to ensure that their UCC filings are properly indexed and are disclosed in the lien search results. Q In light of this decision, we recommend that creditors review the fi ling rules in every state where they operate and make sure that they correctly identify the debtor on every fi nancing statement they fi le. Should you require more information concerning the legal and busi- ness aspects of the above, please feel free to contact the authors, Julie Chincheck, directly at (304) 347-1713 or via e-mail at jchincheck@ bowlesrice.com , or Kristin Shaffer, directly at (304) 347-2127 or via e-mail at kshaffer@bowlesrice.com . Ms. Chincheck is a partner in Bowles Rice McDavid Graff & Love LLP specializing in bankruptcy and commercial law. Kristin Shaffer is an associate in Bowles Rice McDavid Graff & Love LLP specializing in bankruptcy, bank regulatory and commercial law. Bowles Rice McDavid Graff & Love LLP is general counsel to the West Virginia Bankers Association.