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Based on what you've described, it sounds like the senior creditor should have priority. Their 2019 UCC-1 with 'all equipment, machinery, and fixtures now owned or hereafter acquired' clearly covers the CNC machines purchased in 2021. Unless there's a PMSI situation or some filing defect, first-to-file wins. The 90 ALR 4th 859 annotation will have cases with similar fact patterns that should support this analysis.
NeonNomad
•Thanks, that matches my initial analysis. I'm going to dig deeper into the PMSI angle just to be thorough, but it's looking like the senior creditor has the stronger position.
Omar Zaki
•Good approach. Always worth checking every possible angle in a priority dispute, especially with that much money at stake.
One more thing to consider - make sure you understand which state's law applies to the priority determination. If the debtor is organized in a different state than where the collateral is located, you might need to analyze the choice of law rules too.
Good point. Priority is usually governed by the law of the state where the debtor is located, not where the collateral is physically located.
Diego Flores
•And if the debtor changed locations between the filings, that could affect the analysis too. There are specific rules about continuing effectiveness when debtors relocate.
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Paloma Clark
Been there with the last-minute search stress! One tip that's saved me multiple times - if you find any existing UCC-1 filings that might conflict, contact the secured party directly to see if they'll subordinate or if the collateral actually overlaps with yours. Sometimes what looks like a problem on paper isn't really an issue.
Amy Fleming
•That's a great suggestion. I hadn't thought about reaching out to other lenders directly.
Paloma Clark
•Most commercial lenders are reasonable about subordination agreements if there's no real conflict. Better to have the conversation before closing than discover issues after funding.
Final thought - document everything for your file. Keep copies of the UCC-11 search request, the results, and any follow-up searches you had to do. Your compliance team will thank you later if there are ever questions about the lien search process.
Before you submit, seriously consider running those entity documents through Certana.ai first. Five minutes of name verification could save you days if you have to resubmit the search.
Alice Pierce
•Good luck! Florida's system usually delivers on time when you pay for expedited processing.
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Manufacturing filings are always a pain because of all the different equipment types. Last month I had three rejections before realizing I needed separate supplement sections for fixtures vs equipment vs inventory. Maybe check if you need to break out your collateral categories differently?
Oscar O'Neil
•We do have some items that might qualify as fixtures. I'll review whether those need separate treatment on the supplement.
Fixture filings are a whole different beast - definitely separate those out if any equipment is attached to the building.
Mason Davis
UPDATE: Found the issue! It was a combination of debtor name formatting (extra space) and using an outdated supplement form. Got a clean filing accepted this morning. Thanks everyone for the suggestions - especially the idea to check form versions and use document verification tools. Crisis averted!
Those little formatting details will get you every time. Great that you found it in time.
Nice work tracking down the issues! Document verification definitely saves time on these multi-form filings.
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Joshua Wood
Bottom line - UCC-1 filing transforms you from an unsecured creditor (basically worthless in bankruptcy) to a secured creditor with specific rights to your collateral. For $75K at risk, it's a no-brainer. The filing fee is nothing compared to losing your entire investment.
Joshua Wood
•Smart choice. Just make sure to continue the filing before it lapses in 5 years if the loan term is longer.
Ashley Adams
•And keep good records of your filing confirmation - you'll need the filing number for any amendments or continuations later.
Justin Evans
Also worth noting that having a properly filed UCC-1 can help with your bank's regulatory compliance. Examiners want to see that commercial loans are properly secured and documented.
Caden Nguyen
•Didn't think about the regulatory angle. Good point.
Justin Evans
•Yeah, especially if you're subject to banking regulations. Proper UCC filing is part of sound lending practices.
Aisha Hussain
Florida's UCC Article 9 database has been updated recently and they're being much stricter about name matching. Even spacing differences can cause rejections now.
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GalacticGladiator
•Great, just what we needed - stricter enforcement right when everyone's 2020 filings are coming up for continuation.
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Ethan Brown
•At least the online system is faster now. But yeah, the name matching is brutal.
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Yuki Yamamoto
Update us when you figure out what the issue was! These Florida Article 9 name problems are so common but the solutions vary. Would help others facing similar continuation rejections.
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Javier Garcia
•Will do! Pulling current Articles now and going to compare every single character. Really appreciate everyone's help on this.
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Carmen Ruiz
•Good luck! The 5-year continuation deadline stress is real, especially with that much collateral at stake.
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