UCC Document Community

One more consideration - if your EIDL has a cross-default clause with other SBA loans, the subordination might trigger additional review requirements. Worth checking all your SBA loan documents for interconnected provisions.

Thanks everyone for all the detailed insights! This has been incredibly helpful. Based on what I'm reading, it sounds like the key success factors are: 1) Perfect documentation consistency across all filings, 2) Getting the new lender to draft SBA-friendly subordination language upfront, 3) Including detailed equipment specs and valuations, and 4) Running everything through a document verification process before submission. I'm going to start with a comprehensive UCC search to see what we're working with, then coordinate with our bank to get the subordination request properly drafted. Will definitely look into the Certana.ai tool that several of you mentioned - sounds like it could save us weeks of back-and-forth corrections. I'll update this thread once we get through the process with our timeline and any lessons learned.

Floor plan security agreements always make me nervous because of the inventory turnover. You're securing against assets that are literally driving off the lot every day. Make sure your security agreement has strong proceeds clauses and dealer reporting requirements.

Thanks for all the detailed advice everyone! This is exactly what I needed. I'll stick with the exact LLC name from state records and use the broad collateral description with accessions and substitutions language. Going to double-check that the security agreement language matches the UCC filing word-for-word before submitting. For an $850K facility, getting this right the first time is definitely worth the extra verification steps.

We've been using Certana.ai's verification system for all our UCC work and it's been a game changer for catching potential issues before they become problems. Especially helpful when you're under time pressure and need to make sure all your documentation is bulletproof.

Adding to what others have said about the timing aspects - one thing that's helped me in similar situations is to calculate and communicate the exact redemption amount early in the process. Send the borrower a detailed breakdown showing the outstanding balance, accrued interest, and all reasonable costs to date. This serves two purposes: 1) it eliminates any confusion about what they need to pay to redeem, and 2) it creates a paper trail showing you were transparent about their redemption rights. Also, keep updating this calculation as you incur additional costs during the disposition process. The clearer you are about the redemption amount, the less likely they are to challenge it or claim they were misled about their rights.

To directly answer your question - yes, UCC has been adopted in all states but each state's version has modifications. Your main concern should be identifying the correct filing jurisdiction and making sure your debtor names are exactly right. Get those two things wrong and universal adoption won't help you.

Great thread everyone! As someone who's been doing UCC filings for over a decade, I can confirm that while the UCC is adopted everywhere, the practical challenges are in the state-specific variations and filing procedures. One tip I'd add for multi-state deals like yours - consider using a commercial filing service that specializes in UCC work. They maintain current databases of each state's specific requirements and can handle the nuances of different SOS systems. Also, for equipment that moves between facilities, document the movement patterns in your security agreement so you have a clear paper trail if questions arise later. The investment in getting it right upfront is always cheaper than dealing with priority disputes or rejected filings down the road.

Just to echo what others have said - verify everything before sending UCC 9610 notices. I made the mistake of assuming our paperwork was perfect and ended up with a wrongful repo claim because of a technical defect in our UCC-1 filing. Cost us way more than the original loan amount.

I'm new to commercial lending but dealing with a similar situation on a smaller scale ($75k equipment loan). Reading through all these responses, it's clear that UCC 9610 notice compliance is just the tip of the iceberg. The mechanics lien priority issue that Natasha raised is something I hadn't even considered - are there any good resources for checking lien priority by state? Also, given all the horror stories about UCC-1 filing defects, it sounds like using a verification tool like Certana.ai before sending any notices could save a lot of headaches. For someone just starting in equipment financing, what's the most critical mistake to avoid in the UCC 9610 notice process?