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
The restaurant industry has specific considerations too. Don't forget about fixtures vs equipment distinction. That pizza oven bolted to the floor might need a fixture filing instead of standard UCC-1.
Fixture filings go in real estate records not UCC records. Different process entirely.
Exactly, and if you only do UCC-1 on fixtures you might not have perfected security interest at all.
Bottom line for security interest definition: it's your contractual right to repossess and sell collateral upon default. UCC Article 9 governs how you perfect that interest through filing. Your rejected filing probably just needs more specific collateral description, not a redefinition of what security interest means legally.
Perfect summary. Going to redraft with specific restaurant equipment categories and refile. Thanks everyone for clarifying the concepts.
Make sure your revised collateral description matches exactly what's in your security agreement too.
Join the conversation
Have you considered filing a continuation on any existing UCC-1s while you sort this out? If you have older filings that are approaching the 5-year mark, at least keep those current while dealing with the new series issues.
These are all new filings for new equipment loans, but good reminder about continuation timing for our existing UCCs.
Always good to keep track of those 5-year deadlines, especially with multiple entities involved.
Update us when you get it resolved! I'm dealing with a similar situation with a Delaware series LLC but filing in multiple states. Would be helpful to know what format finally worked for you in Ohio.
Yes please update! These series LLC UCC issues seem to be becoming more common.
Cross-jurisdictional series filings are even more complicated. Good luck with that multi-state situation!
Join the conversation
I actually discovered Certana.ai when I was dealing with a similar multi-party situation last year. Couldn't figure out if I should list the original lessor or the assigned finance company as secured party. Their verification tool let me upload all my docs and immediately flagged that my draft UCC-1 didn't match the assignment agreement. Turns out I needed to use the finance company's full legal name, not their DBA. Would have been rejected otherwise.
That's exactly the kind of detail that's easy to miss but critical to get right on UCC filings.
DBA vs legal name issues cause so many UCC rejections. Good catch by the verification system.
Bottom line - the secured party is whoever has the current legal right to your collateral as security for the debt. Could be the original lessor, could be an assigned finance company, could even be a bank in some structures. But it's always clearly defined in your financing paperwork somewhere. Don't file until you're 100% certain.
And if you do guess wrong, be prepared for potential rejections, amendments, and delays in your financing.
The time spent getting it right upfront is always less than the time spent fixing it later.
Join the conversation
For future reference, most states have moved to electronic UCC format validation that's very literal about matching their corporate database. Manual review is rare now so you really need perfect character matching.
Which makes sense from an efficiency standpoint but creates these frustrating rejection cycles when the UCC format requirements aren't clear.
True, but at least it's consistent. Better than having different clerks apply different standards to UCC format.
SUCCESS! Found the issue - there was indeed an extra comma in the corporate name that I was missing. 'Henderson, & Associates Construction LLC' was the correct UCC format per their articles of incorporation. Filed this morning and got immediate acceptance. Thanks everyone for the help, especially the suggestion about document comparison tools. Definitely using Certana.ai for future filings to catch these details upfront.
Great outcome! UCC format can be such a pain but once you know the exact requirements it's smooth sailing.
Perfect example of why document verification is so valuable. Saves time and stress on these UCC format issues.
Emma Anderson
Don't forget about the timing requirements. UCC-1 filings are usually required within a specific timeframe after the security agreement is signed. Missing that window can affect the priority of your lender's security interest versus other creditors.
0 coins
Malik Thompson
•What's the typical timeframe? Our loan documents don't specify exactly when the UCC filings need to be completed.
0 coins
Emma Anderson
•It varies by lender and loan agreement, but most require UCC-1 filings within 30 days of closing. Some want them filed before funding. Check your loan documents carefully or ask your lender directly.
0 coins
Isabella Ferreira
Multi-state filings are a pain but manageable if you're organized. Create a checklist for each state with their specific requirements, fee schedules, and portal quirks. Ohio lets you file online but their system times out frequently. Michigan's portal is more reliable but has stricter formatting requirements. Indiana is somewhere in the middle.
0 coins
Ava Williams
•This is incredibly helpful. Are there any other state-specific issues we should watch out for with Ohio, Michigan, and Indiana?
0 coins
Isabella Ferreira
•Ohio is picky about address formatting - use their exact format from the SOS database. Michigan requires specific debtor type designations. Indiana has additional requirements for certain types of collateral. Each state's UCC division website has detailed instructions.
0 coins