Everyone understands the importance of using full legal names when filing UCC's, but how critical is it to have the full legal name on Promissory Notes, Security Agreements and Guaranty Agreements? We cannot rely on Driver's license, as they may not have full legal name either? Can we collect on a loan made to "Bubba Smith" if that's what's on his driver's license, but not his birth certificate?

I would like to know the answer to this as well. I have been told the social security number has to be exact, but I am not sure about exact legal names. Do driver's licenses' really not reflect the exact legal name of an individual?

The SVP of Lending has advised that her legal name is not on her driver's license, for example, so that is not always a foolproof method of obtaining a legal name.

Another issue we have regarding "legal name" is whether or not punctuation is part of legal name when a business name is concerned. I would like to scrub punctuation from our data files but I've been told that "Ad-aware, Inc." is different from "Ad aware Inc" and could create a problem legally. I could live with Ad-aware Inc but our staff insists on Ad-aware, Inc. Any thoughts out there regarding this??

I would suggest contacting an attorney familiar with contract laws in the states you are located.

I will give you an example - I had a neighbor that was a CPA. A customer of his name was (this is not the real name) John B Jones. My neighbor filed the taxes under John B. Jones. The IRS kicked it back because the name did not match the SSN for previous filings. My neighbor had to redo all the tax filings, which was quite a complicated filing, at no cost and pay a filing penalty. This occurred in the mid 70's.

Did you catch the difference?

Yes, I do see the difference. One thing that we have done, is to prepare docs in the full legal name, including punctuation, but in our computer system, all commas, periods, etc. have been removed in the names. Also, most search systems, including the SOS for TX request that you exclude all punctuation from your search entry when searchin by company name.

As for as your customer system I don't see a problem as long as all documents going to the customer produced from the system have the correct name. (This is just my opinion).

BTW, FWIW, my IN DL has my full legal name printed on it.

Keep in mind that when you're dealing in real estate, docs need to be prepared to continue the chain of title which may not necessarily match what you determine is the legal name. That's when you need a name affidavit in the file to back your doc prep up.