UCC Document Community

The bottom line is you need to review your original credit card agreements and understand exactly what your equipment UCC-1 covers. If the credit card companies have legal grounds to file UCC liens, they can do it, but they can't take priority over existing perfected security interests for the same collateral. Get your documents analyzed properly so you know where you stand.

This is a complex situation that requires careful document analysis. From what you've described, your 2022 equipment financing UCC-1 should have priority over any later credit card filings for that specific collateral. However, credit card companies can potentially file UCC liens against other business assets if their agreements include conversion clauses. The key is understanding exactly what assets are covered by your existing UCC-1 versus what remains available for other creditors. I'd recommend getting all your documents - the original equipment loan papers, UCC-1 filing, and all credit card agreements - reviewed together to understand the full picture. In NY, UCC priority is generally based on filing date, but only for the same collateral. Different asset categories can have different secured creditors.

Network with other lenders who might have deals outside their lending parameters. If they can't do a deal due to size, geography, or industry focus, they might refer it to you.

Another free approach is monitoring trade publications and industry newsletters for merger & acquisition announcements. Companies involved in M&A transactions often need bridge financing or working capital loans during the transition, and existing UCCs may need to be restructured. Set up email alerts from industry publications in sectors you're targeting - manufacturing, healthcare, transportation, etc. The deals mentioned are usually substantial enough to warrant UCC filings and the timing gives you a window to reach out before they've locked into financing elsewhere.

Been doing UCC filings for small businesses for years. The accounts definition covers your situation perfectly - restaurant receivables from catering services are classic examples of accounts under Article 9. Your outstanding invoices from corporate clients and convention center contracts all qualify. The definition is intentionally broad to capture most commercial receivables.

The UCC Article 9 definition of "accounts" in section 9-102(a)(2) is actually quite comprehensive for your restaurant situation. It covers "a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered..." Your catering receivables, corporate contract payments, and monthly billing arrangements all fall squarely within this definition since they represent payment obligations for food service you've provided. The key thing to remember is that accounts are created when you perform the service and become entitled to payment - whether that's from a one-time catering job or an ongoing corporate contract doesn't change the classification.

Update us when you figure out the best approach! I do a lot of equipment financing in Pennsylvania and always looking for better ways to handle the UCC search process.

I've been doing UCC searches in Pennsylvania for about 3 years now and can definitely relate to the portal frustrations. One thing that's helped me is doing searches during off-peak hours - early morning or late evening when fewer people are hitting the system. Also, for manufacturing equipment deals, I always recommend getting a title insurance policy that covers UCC search errors if the loan amount justifies it. The premium is usually reasonable compared to the potential exposure if you miss something critical.

Just to close the loop - I talked to the bank and they confirmed they want both a UCC-1 filing in Florida AND a search report showing current liens. Thanks everyone for helping me figure this out! The name verification tool someone mentioned sounds really helpful too.

Welcome to the multi-state UCC world! One thing I'd add that hasn't been mentioned yet - if your borrower moves the equipment between states after filing, you might need to refile in the new location within 4 months to maintain perfection. Just something to keep in mind for your loan documentation and monitoring requirements. Also, Florida's UCC search fees are pretty reasonable compared to some other states, so getting both the filing and search done shouldn't break the bank.