A document should evidence that the borrower is 18 years old or older and therefore has the legal capacity to contract. Where the individual has used multiple variations of his/her name a Same Name Affidavit is recommended. A sample form is located at the end of this chapter.
EXAMPLE: A debtor’s exact full legal name as reflected on his most recently issued and unexpired Texas driver’s license is John Lee Doe. He goes by J.L. Doe. His nickname is Bubba Doe. The UCC-1 should list the debtor as John Lee Doe.
CAUTION: UCC 9.503(a)(4) provides that the name of an individual debtor on a financing statement filed in Texas sufficiently identifies the individual debtor only if that name matches the name shown on his or her most recently issued and unexpired Texas driver’s license or unexpired Texas personal identification card (a “Texas ID Card”) issued by the same office that issues Texas driver’s licenses. Revised UCC 9.503(a)(5) provides that if Texas has not issued a driver’s license or Texas ID Card to an individual, or it has expired, then the financing statement must reflect either (i) the individual name of the debtor (if he or she has only one name) or (ii) the surname and first personal name of the debtor.
CAUTION: Banks in Texas often are presented with Matricula Consular cards as identification. A Matricula Consular is an official I.D. card, which is issued by the Mexican Government through its Consular Offices. The document ONLY proves that the bearer is of Mexican nationality and is living outside of Mexico. The Bank Secrecy Act Customer Identification Program permits use of any government issued document evidencing nationality or residence and bearing a photograph or similar safeguard. Many view this as allowing a Bank to accept a Matricula Consular card as a form of identification. Although such a card is a permissible ID, you may still want a secondary source of ID if you have reason to doubt the authenticity of the card. Matricula cards are not acceptable in mortgage lending because social security numbers are required for home loans. Social security numbers also provide background and credit history for loan decisions. Thus, acceptance of Matricula Card creates the need for another method of review of creditworthiness.
NOTE: If an individual debtor is located (that is, has his or her principal residence) in Texas, Bank should require that the individual debtor obtain and maintain a Texas driver's license or Texas ID Card.
NOTE: If an individual debtor is located in a state other than Texas, the requirement for the sufficiency of an individual debtor's name on a UCC financing statement filed in that state may be different. Local counsel should be consulted.