UCC Document Community

Update: I revised my collateral description to specifically reference insurance proceeds and other proceeds as defined in UCC 9-102(a)(65) and the filing was accepted! Thanks everyone for the help. This forum is so much more helpful than trying to decipher the UCC commentary on my own.

As someone new to UCC filings, this thread has been incredibly educational! I'm working on my first equipment financing deal and was about to make the same mistake with a generic "all equipment and proceeds thereof" description. Based on what everyone's shared, it sounds like the key is being specific about what types of proceeds you're claiming - insurance payouts, sale proceeds, etc. - rather than just using the blanket "proceeds" language. I'm definitely going to reference UCC 9-102(a)(65) in my collateral description and maybe look into that Certana.ai tool that was mentioned to double-check my work before filing. Thanks for all the practical advice!

Just to add to what everyone else said - if you're in a state that requires fixture filings for certain types of equipment, those have the same 5-year rule. Don't forget to check those too if any of your collateral is attached to real estate.

This is a really important discussion that highlights how critical UCC tracking is. I'm relatively new to managing secured transactions, but from what I'm reading here, it sounds like the key is having a systematic approach to monitor these deadlines well in advance. The 5-year rule seems unforgiving, but I can see why it exists to keep public records clean. For those who have dealt with expired filings, what's the typical cost impact when you lose priority and have to re-file? I'm trying to understand the full financial implications beyond just the paperwork hassle.

I'm dealing with a similar issue right now and this thread has been incredibly helpful! Just to confirm my understanding - if I have an LLC borrower with an individual guarantor, I need two separate UCC1 forms, one for each debtor, even though it's the same loan and same collateral. And I need to be absolutely certain about the exact legal names from the source documents. One question though - do both UCC1 forms need to describe the collateral identically, or can the descriptions vary slightly as long as they cover the same equipment?

This is such a common source of confusion! I've been handling UCC filings for about 8 years now and can confirm what others have said - you absolutely need separate UCC1 forms for the LLC and the individual guarantor. They're distinct legal entities even though they're related to the same transaction. One tip I'd add is to make sure your loan documentation clearly states that both parties are debtors under the security agreement, not just that one is a guarantor. If the individual is only guaranteeing payment and not granting a security interest in the collateral, you might not need a UCC filing for them at all. Review your security agreement language carefully to confirm both parties are actually granting security interests in the same collateral.

This thread is making me realize I need to review our UCC sale procedures. We haven't had to liquidate collateral yet but want to be prepared. Should we have standard checklists for documentation and notice requirements?

This is a really comprehensive discussion that's helping me understand the intricacies of UCC sale challenges. As someone new to secured lending, I'm curious about the deficiency balance aspect - if the debtor successfully challenges the sale as commercially unreasonable, does that typically eliminate or reduce their remaining debt obligation? Or would you just have to redo the sale process?

I just went through this exact process last month - here's what saved me from rejections: 1) Get the debtor name directly from your state's Secretary of State business search (not from bank docs or anything else), 2) For equipment financing, "all equipment now owned or hereafter acquired" works great for collateral description, 3) Double-check the debtor's mailing address matches what's on file, and 4) File online if your state allows it - the validation catches basic errors before submission. The key is being methodical about the debtor name verification since that's where 90% of rejections happen. Take your time and you'll be fine!

As someone who's handled hundreds of UCC filings, I can't stress enough how important it is to get that debtor name exactly right. Here's my foolproof checklist: 1) Always search the Secretary of State database using the debtor's entity ID number if you have it - this eliminates any guesswork about which entity record to use, 2) Print or screenshot the official entity details page showing the exact legal name and keep it in your file as documentation, 3) For equipment collateral, stick with broad language like "all equipment, machinery, and fixtures now owned or hereafter acquired" - it's legally sufficient and covers future purchases, 4) Verify the debtor's principal place of business address matches what you're putting on the UCC-1, and 5) If your state offers it, use the online filing system's preview feature to review everything one final time before submission. The key is having a systematic process you follow every time so you don't miss critical details when you're under deadline pressure. Good luck with your filing!