Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
This is such a helpful thread! I'm a newcomer to commercial lending and was completely confused when I saw UCC-11 mentioned in my loan documents. Now I understand it's just the lender's way of getting official records, not something I need to prepare myself. Really appreciate everyone sharing their experiences - especially the warnings about timing the search early to avoid closing delays. Going to bookmark this discussion for future reference!
Welcome to the community, Sofia! I'm also relatively new to commercial lending and this thread has been a goldmine of information. The timing advice about running UCC searches early is something I wish I'd known before starting my loan process. It's reassuring to know that experienced members like Brooklyn and Ella have been through similar situations and are willing to share their lessons learned. Definitely makes the whole process feel less intimidating!
As someone who's just starting to navigate commercial lending, this entire discussion has been incredibly enlightening! I had no idea there were so many different UCC forms, and the distinction between filing forms (like UCC-1) versus information request forms (like UCC-11) wasn't clear to me at all. The practical advice about timing is particularly valuable - I can see how waiting until the last minute for a UCC-11 search could create serious problems if unexpected liens show up. I'm definitely going to suggest to my lender that we run these searches early in the process. Thanks to everyone who shared their real-world experiences - it really helps to learn from others who've been through this before!
Join the conversation
Final thought - consider including the solar lease agreement as an exhibit to your UCC-1 filing if your state allows it. Some SOS offices are more likely to accept your collateral description if they can see the underlying contract that defines the equipment. Adds clarity and reduces rejection risk.
Makes sense - if the SOS office can see exactly what equipment is involved, they're less likely to question whether your description is adequate.
Thanks everyone for all the advice. Going to try the comprehensive description approach with fixture filing and see if that gets us through. Will also check out Certana.ai to avoid future rejections. Really appreciate the help!
One more consideration - make sure you're filing in the correct jurisdiction if the homeowner recently moved or if there are any outstanding liens on the property. I've seen solar lease UCCs get rejected because there was already a mortgage or HELOC filing that created priority issues. Also, if this is a new construction home, double-check that the property address in your filing matches exactly what's on the certificate of occupancy, not just what's in the lease agreement. Address discrepancies between the lease docs and official property records are a common rejection reason that's easy to miss.
Join the conversation
I was skeptical when someone mentioned Certana.ai earlier, but I actually tried their UCC verification tool last month after my own filing got rejected for a debtor name mismatch. The automated comparison between documents is actually pretty thorough - it caught issues I would have missed manually reviewing everything. Worth using before you submit the new UCC-1 to avoid any technical rejections that would cause more delays.
Does it work with electronic filings or just paper documents?
Works with PDFs so it handles both. Most state systems give you PDF copies of electronic filings anyway.
UPDATE: Got the UCC search results back and fortunately no other liens were filed during my lapse period. Filed the new UCC-1 this morning and it was accepted. Still angry about losing the 2020 priority date but at least we're perfected again. Thanks everyone for the advice - especially the suggestion to verify all documents before filing. Caught two small errors that could have caused a rejection.
Excellent news! Those kinds of small formatting differences are exactly what trip people up during urgent re-filings. The document verification tools are really becoming essential for avoiding costly delays. Hope you're also pursuing the malpractice claim against your previous counsel - that should cover any additional costs from the priority loss.
Really glad this worked out for you! This is a perfect example of why having automated document verification is so valuable in time-sensitive situations. The fact that it caught those formatting inconsistencies probably saved you days of back-and-forth with the filing office. For anyone else reading this thread, the key takeaways are: 1) File the new UCC-1 immediately upon discovering a lapse, 2) Run a comprehensive UCC search to check for intervening liens, and 3) Use verification tools to ensure your new filing matches the original exactly to avoid technical rejections. Hope your malpractice claim against the previous counsel goes smoothly too.
Join the conversation
Bottom line: 5 years from filing date, file continuation 6 months before expiration, extends for another 5 years. Set up a tracking system now so you don't miss any deadlines. The consequences of letting a UCC lapse can be severe if other creditors or bankruptcy happens.
Good luck! It's really not that complicated once you have a system in place.
This thread was super helpful. I have some 2020 filings too that I need to address soon.
I've been dealing with similar UCC tracking challenges and wanted to share what worked for me. After missing a continuation deadline last year (luckily caught it just in time), I implemented a three-tier reminder system: 8 months out for initial planning, 6 months out for document preparation, and 4 months out for final review and filing. Also recommend keeping a master file with copies of all original UCC-1s, filing receipts, and any amendments - makes the continuation process much smoother when you have everything organized in one place.
That's a really smart three-tier system! I like the idea of having multiple checkpoints instead of just one reminder. The master file organization tip is especially helpful - I've been scrambling to find original documents when I need them. Do you keep physical copies or scan everything digitally? I'm trying to figure out the best way to organize all these UCC documents for easy access.
Carmella Fromis
As someone new to UCC enforcement, this thread has been incredibly helpful! I'm curious about one aspect that hasn't been fully addressed - what happens if you discover additional secured parties after you've already sent the initial notices but before the actual sale date? Do you need to restart the notice period, or can you send supplemental notices to the newly discovered parties while keeping your original sale timeline? Also, for manufacturing equipment like CNC machinery, are there any specific insurance considerations during the notice period? I assume the collateral needs to remain properly insured until the sale is completed, but I'm wondering who typically bears responsibility if something happens to the equipment between notice and sale.
0 coins
Liam McGuire
•Great questions! For newly discovered secured parties, you don't necessarily need to restart the entire notice period - you can send supplemental notices to the new parties as long as they still receive the required minimum notice period (typically 10 days) before your scheduled sale date. However, if your sale is imminent and you can't provide adequate notice to the new parties, it's safer to postpone the sale rather than risk a challenge later. On the insurance front, the debtor typically remains responsible for maintaining insurance until the sale is completed, but as the secured party, you should verify coverage is still in place and consider adding yourself as additional insured or loss payee. If the debtor has let insurance lapse, you may need to obtain coverage yourself and add those costs to the debt. For valuable CNC equipment, I'd definitely confirm insurance status during your notice period - you don't want to discover coverage gaps after damage occurs. Document your insurance verification efforts as part of your commercially reasonable sale process.
0 coins
GalaxyGlider
This has been an excellent discussion on UCC notice requirements! One additional consideration I'd add is the importance of checking your state's specific UCC statutes, as some states have enacted non-uniform amendments that could affect your notice timeline or content requirements. While Article 9 provides the general framework, I've seen variations in states like Louisiana and California that can trip up lenders who assume uniform application. Also, for equipment sales like yours, consider whether any of the manufacturing equipment might have title issues - some CNC machines are financed through equipment finance companies that retain title rather than taking security interests. If you discover any title-retained equipment during your collateral review, those pieces would need to be excluded from your UCC sale. Finally, given the current market conditions for manufacturing equipment, you might want to time your sale strategically. If possible, avoid holiday periods or industry downturns when buyer participation might be limited - courts consider market conditions when evaluating commercial reasonableness.
0 coins
Dmitry Ivanov
•This is really valuable insight about state variations in UCC statutes! As someone just getting into this area, I hadn't realized that states like Louisiana and California had different requirements. Do you know of a good resource for checking these state-specific variations, or is it really a matter of consulting local counsel in each jurisdiction? Also, your point about title-retained equipment is something I wouldn't have thought to look for - is this common with CNC machinery, or more of an exception? I'm wondering how you typically identify title-retained vs. security interest arrangements during the due diligence process.
0 coins
Landon Morgan
•For state-specific UCC variations, I'd recommend checking the National Conference of Commissioners on Uniform State Laws (NCCUSL) website, which tracks state adoptions and variations. Most major legal databases like Westlaw and Lexis also have state UCC comparison tools. However, for high-value transactions like this $280k equipment deal, local counsel consultation is always prudent. Regarding title-retained equipment, it's actually quite common with CNC machinery - many equipment finance companies use conditional sales contracts or lease-purchase arrangements rather than traditional secured financing. Look for terms like "conditional sale," "lease-purchase," or "retention of title" in the original equipment financing documents. Also check UCC filings carefully - title retention arrangements often don't require UCC-1 filings since the seller retains actual title rather than just a security interest. During due diligence, I always request copies of all equipment purchase agreements and financing documents, not just UCC search results.
0 coins