In Re Ptm Technologies, Inc.

Facts

P is a duly organized corporation organized under North Carolina. PTM Technologies, Inc. is the actual, registered name of P in the office of the Secretary of State of North Carolina. P sought certain financing from D, and the parties closed on four separate loans subject to a master security agreement. D got a security interest in the collateral described in the loan documents. Some of the loans were sold and assigned to GE Capital (D). On August 23, 2010, GE Capital (D) filed a proof of claim in the amount of $5,185,283.35. This includes a UCC financing statement that was filed with the North Carolina Secretary of State's office on May 7, 2008. The financing statement incorrectly listed P's name as 'PTM Tecnologies, Inc.'-omitting the 'h' in 'Technologies.' The financing statement that was filed with the Secretary of State's office by D on the same date also incorrectly listed the Debtor's name by omitting the 'h' in 'Technologies.' The State maintains a website that may be accessed over the internet. By clicking on 'UCC Research,' a user accesses the website page on which research regarding UCC financing statements may be conducted. Two types of searches are available on the research page, namely, the 'Standard RA9' search and the 'Non-Standard RA9' search. When the research page is accessed, the Standard RA9 search is selected automatically. A standard search is then available by inserting the name of the organization in question and clicking on the word 'Search.' In order to conduct a non-standard search, it is necessary to click on 'Non-Standard RA9.' A search of the records under P's correct name, using the 'Standard RA9' search, does not reveal Ds financing statement. A search of the Secretary of State's records under P's correct name, using the 'sounds like' feature of the 'Non-Standard RA9' search reveals the financing statements filed by Ds.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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