IN RE: Tyringham Holdings, Inc., Chapter 11 Debtor; The Official Committee of Unsecured Creditors for Tyringham Holdings, Inc., Plaintiff, v. Suna Bros. Inc., Defendant, 354 B.R. 363

Summary

Debtor held jewelry consigned to it by creditor. Creditor held a security interest in the consigned inventory and attempted to perfect the security interest by filing a financing statement with the Virginia State Corporation Commission. The financing statement was filed by creditor and listed the debtor's name as "Tyringham Holdings." The debtor was listed as "Tyringham Holdings, Inc." on the public records of the Commission. An official UCC search certified by the Commission conducted under the name "Tyringham Holdings, Inc." did not reveal creditor's financing statement. Creditor argued that the Commission's search logic was faulty because it did not filter out "Inc." as a noise word, even though the International Association of Corporation Administrators considered it as such. The court held that the search logic standard in place, as set forth in 5 Va. Admin. Code 5-30-70(E)(4), did not include "Inc." as a noise word. The court held that the financing statement was seriously ...