What is one consequence of providing an inaccurate name in a financing statement?

Providing an inaccurate name in a financing statement can lead to the consequence of an unperfected security interest. Under the Uniform Commercial Code (UCC), accurate identification of the debtor is critical in establishing and perfecting a security interest. If the name used in the financing statement does not match the debtor's correct legal name, it may fail to provide proper notice to third parties.

This lack of notice can hinder the secured party's ability to enforce their rights in the collateral against competing claims. As a result, the security interest does not achieve perfection, meaning it is not enforceable against claims from other creditors or purchasers of the collateral.

The status of the security interest as unperfected can have significant implications, such as losing priority over other secured interests that may arise or being unable to recover the collateral in the event of a default by the debtor. Therefore, accurate information in the financing statement is essential for the perfection of security interests.