Brief Fact Summary. Transamerica Commercial Finance Corp, (Plaintiff) entered into a security agreement with Wardcorp, Inc. and filed a financing statement with the Secretary of State listing Wardcorp, Inc. as Ward Corporation Inc. When Wardcorp, Inc. filed for Bankruptcy, Plaintiff filed this proceeding naming as defendants those parties who may assert an interest in the collateral in which Plaintiff claims a secured interest.
Synopsis of Rule of Law. Under Indiana Law, an error in a debtor’s legal name is minor and not seriously misleading only if a properly executed search of the correct legal name by the Secretary of State’s office would disclose the filing without depending on the discretion of the clerk conducting the search.
Issue. Whether Plaintiff’s filing under Ward Corporation, Inc. was a minor error.
Held. No. Plaintiff’s filing under Ward Corporation, Inc., was not a minor error but was seriously misleading and thus ineffective to perfect its security interest.
Moreover, the test of the sufficiency of a financing statement is whether, under all the facts, the filing would have given a file searcher notice to justify placing a duty upon him to make further inquiry concerning the possible security interest.View Full Point of Law