UCC Document Community

Update: ended up going with "all accounts, chattel paper, instruments, documents, general intangibles, payment intangibles, supporting obligations, and proceeds thereof" based on everyone's advice. Filed yesterday and got accepted in all three states. Thanks for the help sorting out the UCC accounts receivable definition mess!

This thread is incredibly helpful - I'm dealing with a similar issue right now with a debtor who has SaaS subscription revenue, professional services contracts, and equipment leasing income. The UCC accounts receivable definition gets murky when you're dealing with recurring subscription payments that might be considered executory contracts rather than traditional A/R. Has anyone run into issues where subscription revenue didn't qualify as "accounts" because the services haven't been fully performed yet? I'm wondering if I need to specifically include "contract rights" or if the general intangibles category would cover ongoing subscription obligations.

This thread has been incredibly helpful! As someone new to commercial lending, I had no idea UCC filings were so complex. Just to make sure I understand the basics: banks file UCC-1 forms to claim security interests in business collateral, these need to be renewed every 5 years, and the debtor name has to match exactly with official state records. Are there any other "gotchas" that commonly trip up new people in this field?

This whole thread has been a goldmine for understanding UCCs! I've been working in loan operations for about 6 months and kept seeing UCC references in our files without really grasping what they meant. The car title analogy really clicked for me - it makes perfect sense that we need to publicly record our claim on business assets just like a lien on a vehicle. I'm definitely going to start paying more attention to these filings in the loan packages I review. Thanks everyone for breaking this down in such plain English!

The fact that you're asking this question shows you understand the issues better than your loan officer. Equipment loans require UCC filings even when the equipment sits on real estate. This is fundamental secured transactions law. Don't let someone else's confusion put your lien position at risk.

This is a classic example of why it's so important to understand the distinction between real estate and personal property in secured transactions. Your loan officer is applying an oversimplified rule that's causing confusion. Manufacturing equipment like CNC machines and compressors are almost always personal property requiring UCC-1 filings, regardless of whether they're bolted to a concrete floor. The key legal test isn't just physical attachment - it's whether the equipment is so integral to the real estate that removing it would substantially damage the property or defeat its essential purpose. Production machinery that can be unbolted and relocated clearly doesn't meet that standard. I'd recommend filing the UCC-1 in Texas (where the equipment will be located) and making sure your loan documentation clearly describes the collateral as personal property throughout all agreements.

Update us when you figure out what the issue was! Always helpful to know what DC is rejecting for so the rest of us can avoid the same problems.

I've run into similar DC filing issues before. One thing that helped me was copying the exact debtor name directly from the DC Secretary of State's online business search portal and pasting it into the UCC form rather than typing it manually. Sometimes there are subtle formatting differences that aren't visible but cause computer rejections. Also, double-check that you're using the correct entity type designation - DC can be picky about whether it should be "LLC", "L.L.C.", "Limited Liability Company" etc. Hope you get it sorted quickly!

Thanks everyone for all the advice. I'm definitely filing the continuation this week. This thread has been incredibly helpful and I feel much more confident about the process now. Going to also look into setting up those automatic reminders to avoid this panic situation in the future!

Just want to echo what others have said about not waiting any longer - you're absolutely right to be concerned about losing your secured position on $180K. I've seen too many lenders get burned by UCC lapses. One thing I'd add is to make sure you're filing in the correct jurisdiction. If your borrower moved their chief executive office to a different state since 2020, you might need to file the continuation in the new state rather than where you originally filed. Also, since you mentioned the equipment has been upgraded, consider whether you need to broaden your collateral description to cover "all equipment" rather than specific serial numbers. This gives you better coverage if they continue to upgrade or replace machinery. Get that UCC-3 filed ASAP and sleep better at night!