UCC Document Community

Bottom line: if you can pick it up and move it and it's not money, it's probably goods. Everything else falls into the other UCC categories. When in doubt, describe it broadly in your collateral schedule and let the lawyers sort out the nuances.

One thing I always remind people is to think about the UCC's purpose - it's designed to give notice to other potential creditors about what's encumbered. So when you're on the fence about classification, ask yourself: would a reasonable searcher expect to find this type of collateral under the category you're using? For manufacturing companies like yours, I'd typically see a filing that covers both "goods" (for the equipment and inventory) and "general intangibles" (for the licenses and IP). The bolted-down equipment question is trickier - you might need to do a fixtures analysis or even consider a real estate filing depending on how integrated it is with the building. Better to over-secure than under-secure in my experience.

One thing to watch out for with NC - they're pretty strict about the continuation statement format. Make sure you're using the current UCC-3 form and that all required fields are completed exactly as specified in the statute.

I've been through this exact situation with mixed collateral in NC. The statute treats equipment and fixtures the same for continuation purposes. Your main focus should be on timing and accuracy rather than worrying about different rules for different collateral types.

I'd also recommend documenting the business rationale for filing early in your deal notes. If you ever face a challenge later (bankruptcy trustee, competing creditor, etc.), having clear documentation that shows this was a legitimate business decision to preserve priority in a competitive lending environment can be helpful. Also make sure your malpractice insurance covers UCC filing issues - some policies have specific exclusions around secured transaction work.

Thanks everyone for the detailed responses - this has been really helpful. Based on what you've all shared, it sounds like filing the UCC-1 early is workable but comes with risks I need to manage carefully. The key points I'm taking away are: 1) Make sure the term sheet provides adequate authorization for filing, 2) Keep the collateral descriptions consistent between the UCC-1 and eventual security agreement, 3) Get the security agreement finalized quickly to minimize the gap, and 4) document the business rationale for early filing. I'm also going to look into that Certana.ai tool a few of you mentioned for cross-checking documents. Going to proceed with the filing but with much more attention to these details than I originally planned. Really appreciate the practical experience you've all shared!

Update us when you figure out what's going on! I'm curious whether it turns out to be a Westlaw display issue or an actual name discrepancy. This kind of situation makes everyone nervous.

I've seen this exact scenario play out before and it's worth doing a comprehensive verification process. First, pull the actual UCC-1 filing from the other lender (not just the Westlaw summary) to see exactly how they listed the debtor name. Then cross-reference both your filing and theirs against the company's current articles of incorporation and their most recent annual report with the Secretary of State. The key is ensuring your UCC-1 matches the exact legal name as currently registered with the state - not just what the borrower told you or what appears on their loan application. If there's any discrepancy, file a UCC-3 amendment immediately. With $450K on the line, spending a few hours on verification and potentially $50-100 on an amendment fee is absolutely worth the peace of mind and protection of your security interest.

Bottom line: 5 years from filing date, continuation window starts 6 months before expiration. File early, double-check debtor information, and make sure you're still in the right jurisdiction. You've got this!

As someone new to UCC filings, this thread has been incredibly educational! I'm working on my first secured transaction and was completely unaware of the continuation requirements. The 5-year rule with the 6-month filing window makes sense, but I'm curious - are there any common mistakes newcomers make with continuation filings that I should watch out for? Also, does anyone have recommendations for reliable UCC search services to verify current filing status before preparing continuations?