We have a commercial loan customer who has borrowed money in her name for the last several years, and we have a ucc in her name with all equipment. She has since incorporated and wants to borrow money in the corporation's name. The problem is the UCC is still in her name, and she has existing loans on the books in her name as well. Does the UCC need to be "amended" to the name of the corporation? What about the existing loan, does it need to be reworked and put into the corporation's name?

It is the exact same equipment she had before. We are a Texas bank.

We cannot tell you to whom the loans should be made. That is for the customer to say (perhaps with their accountant).

Did the corporation purchase or is purchasing the equipment, whereby the individual would pay off their note with those proceeds?

Were the assets just transferred into the name of the corporation, whereby the bank would consider creating a new note to the corporation to payoff off the individual note?

That would also be an underwriting issue for your bank. Does the bank want to make a loan to the corporation?

You should get a Bill of Sale (purchase) or a transfer of assets (individuals capital injection into the corporation) for your file.

The UCC will follow whatever you do. Two loans - you will need UCCs in both names. Just a loan to the corporation - file a new UCC.

Personally I would not file an amendment to change Debtors. This is not a name change - this is a new borrower.