UCC Document Community

Final thought - since your funding is contingent on proper perfection, I'd recommend having a UCC attorney review your filing strategy before proceeding. With a leased premises, $2.8M in equipment, and potential fixture issues, this isn't the time to guess. Get professional guidance to ensure you're properly protecting the lender's interests.

As a newcomer to UCC filings, I'm finding this discussion really enlightening. I'm working on a much smaller equipment loan ($150K) but facing similar fixture vs personal property questions with restaurant equipment that's being hard-plumbed into a leased space. The dual filing approach mentioned here seems like solid advice - better to over-secure than risk losing priority. I'm curious though - for those who've done dual filings, do you typically use identical collateral descriptions on both the UCC-1 and fixture filing, or do you tailor the language differently for each filing office? Also, when you mention getting landlord consent for fixture filings on leased premises, is that typically a formal document or just written acknowledgment in the lease?

Final advice - if you have a defective collateral description, file the UCC-3 amendment to fix it properly. The UCC-5 information statement won't solve your problem and might actually hurt your position by suggesting you think the original filing was adequate. Get that amendment filed ASAP.

Just went through something similar last month. The key distinction everyone's hitting on is crucial - UCC-5 is purely informational and won't cure a defective collateral description. Since you mentioned your original filing just says "all equipment," you're dealing with an overly broad description that needs actual amendment via UCC-3, not just clarification. The borrower's counsel probably knows this and may be hoping you file the wrong form. I'd recommend getting that UCC-3 prepared with a specific description of the manufacturing equipment you actually financed, and make sure all the debtor information matches your original filing exactly to avoid rejection. Time is critical here since they're already challenging your perfection.

Update: I ended up using that Certana.ai verification tool someone mentioned and it was actually really helpful. Found two issues - a slight variation in our corporate name (we had "LLC" instead of "L.L.C.") and the collateral description was missing a serial number that was in our purchase agreement. Got everything corrected and filed yesterday, well ahead of the equipment delivery. Thanks everyone for the advice!

As a newcomer to UCC filings, this thread has been incredibly educational! I'm curious about something - when you mention the 20-day grace period for PMSI priority, does this apply in all states or are there variations? Also, for someone just starting to handle these types of filings, are there any reliable resources or training programs you'd recommend to get up to speed on UCC requirements? I want to make sure I understand all the nuances before I'm in a situation like Raúl's where timing and accuracy are critical.

Pro tip: most states have online UCC search systems where you can verify your filing went through correctly and check for competing liens. Always good to double-check a few days after filing.

This thread has been incredibly helpful! I'm realizing we need to tighten up our UCC1 procedures significantly. A couple follow-up questions: 1) What's the typical filing fee range for UCC1s across different states? 2) If we have a loan participation where we're not the lead lender, who should be listed as the secured party on the UCC1? And 3) For revolving credit facilities secured by equipment, do we need to file amendments every time they draw additional funds, or does the original UCC1 cover future advances as long as we specify that in the security agreement?

I appreciate everyone's input on this. It sounds like the consensus is that UCC 1-308 is legitimate law but completely irrelevant to secured transactions - it's about contract performance under protest, not filing rights. I think I'll take the practical approach of explaining to my client that this language won't provide any protection for their security interest, but if they absolutely insist, I can include it in the additional information section without affecting the validity of the filing. The real focus should be on getting the debtor name exactly right and having a proper collateral description. Thanks for helping me understand this isn't some new legal theory I missed - just misapplied existing law.

I've run into this exact same issue with clients who discovered UCC 1-308 through online research. What I've found helpful is explaining that UCC 1-308 is like having a "without prejudice" clause when you're making a payment under dispute - it preserves your right to challenge the underlying obligation later. But when you're filing a UCC-1, you're not performing under any contract or waiving rights - you're simply giving public notice of your security interest as required by law. The protection comes from proper perfection, not from adding reservation language that doesn't apply to the filing process. I usually show them the actual text of 1-308 and walk through a concrete example of when it would actually be used, which helps clarify why it's not relevant to their financing statement.