How must the debtor's name appear in a financing statement?

The debtor's name must appear in a financing statement as the debtor's legal name. This requirement is critical for ensuring that the financing statement is legally sufficient and properly identifies the debtor to third parties. The use of the legal name helps to avoid confusion and ensures that the statement is effective in perfecting the security interest against the debtor's assets.

Using the legal name maintains consistency and accuracy in public records, which is essential for the priority of security interests. If the name is not the legal name, it could result in challenges regarding the validity of the financing statement, potentially allowing competing creditors to claim priority or even affecting the ability to enforce the security interest.

While it is true that a debtor might use various names in different contexts, relying on anything other than the legal name could lead to improper identification. For instance, a trade name or a commonly used name may not be exclusive to the debtor, complicating the process of determining the rightful claim over the collateral. Thus, the legal name serves as a clear and distinct identifier, fulfilling legal obligations while protecting the rights of secured parties.