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Update on this - we ended up separating our filing into three parts: UCC-1 for mobile drilling equipment, fixture filings for permanently attached pumping units and tanks, and separate mortgage recordings for the mineral lease interests. All accepted on the second try. The key was being way more specific in each collateral description and not trying to cover everything in one filing.
About 6 weeks total because we had wells in 3 different counties. Each county had slightly different fixture filing requirements.
6 weeks? No wonder oil and gas deals take forever to close. The perfection process alone is like a part-time job.
This is a great example of why oil and gas secured transactions require such specialized knowledge. The complexity comes from the fact that you're essentially dealing with three different types of collateral that each have their own perfection requirements under different legal frameworks. For anyone else facing similar issues, I'd recommend working with a local attorney who specializes in oil and gas law - the state-specific variations in filing requirements can be brutal, and the costs of getting it wrong (like delayed closings or unperfected security interests) far outweigh the legal fees. Also, don't underestimate the ongoing compliance burden once everything is filed - those mobile drilling rigs create perpetual headaches for maintaining perfection across state lines.
This is really helpful perspective! As someone new to oil and gas financing, I'm wondering - are there any red flags to watch for when evaluating whether a lender actually understands these complexities? It seems like a lot of institutions might take on these deals without realizing how intricate the perfection requirements are. Also, do you have any recommendations for staying current on state law changes? It sounds like these rules evolve frequently.
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Another thing to consider is your collateral descriptions. Make sure the language in your security agreement matches what you put in the UCC filings. I've seen deals where inconsistent descriptions caused problems during enforcement.
Yeah, that's exactly why I started using Certana.ai. It catches those description inconsistencies automatically when you upload the documents.
I'm definitely going to check that out. Sounds like it could save a lot of review time and catch mistakes I might miss.
Thank you all for this incredibly helpful discussion! As someone new to commercial lending, I was feeling overwhelmed by the UCC vs mortgage requirements, but reading through everyone's experiences has really clarified things for me. The consensus seems to be: when in doubt, file UCC-1 statements for personal property and UCC fixture filings for anything that could be considered removable. I appreciate the practical advice about creating detailed collateral categorization lists and filing well before closing. The horror stories about losing priority due to missed filings are exactly the wake-up call I needed. I'm definitely going to adopt the "over-file rather than under-file" approach and will look into some of the document verification tools mentioned here to avoid description inconsistencies. This community is such a valuable resource for navigating these complex situations!
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This has been such a helpful thread. I'm bookmarking it for future reference. The terminology confusion is real and I'm glad I'm not the only one who was struggling with this. UCC-1 financing statement = lien filing. Financial statements = accounting documents. Got it!
Same here. This confusion cost me hours of research time that I could have avoided.
At least now we all know for next time. Proper terminology matters in this stuff.
This thread saved me so much confusion! I was literally about to call my lender and ask for a "UCC financial statement" template. Now I understand it's just sloppy terminology that gets thrown around. The UCC-1 financing statement is the actual legal document that gets filed to create the security interest, and it has absolutely nothing to do with my business's P&L or balance sheet. Thanks everyone for being so clear about this distinction - it's going to save me from looking foolish on my next loan application!
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One more thing - make sure your collateral description hasn't changed either. If you've added equipment since 2020 you might need to amend that too, not just the debtor name.
Should be fine then, but double-check the original UCC-1 language to be sure. 'All equipment' is pretty broad.
Yeah as long as it says 'all equipment' or 'equipment now owned or hereafter acquired' you should be covered for new additions.
Had a similar situation in Tennessee a few months back. One thing that might help - when you pull that certificate of existence, also check if your registered agent info matches exactly on both the UCC-1 and your current corporate records. Tennessee sometimes flags mismatches there too, even if it's not obvious. Also, if you're working with a tight timeline and want to be extra careful, consider doing the amendment via their expedited processing for an extra fee. It's like $25 more but cuts the processing time in half. Better safe than sorry when you've got $480k in collateral on the line.
Madison King
The terminology threw me off at first too. UCC stands for Uniform Commercial Code, which is the law that governs these filings. Each state has its own filing system but they're all based on the same underlying rules.
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Alexander Evans
•Ah, that makes sense. So it's uniform across states but each state handles their own filings?
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Madison King
•Right! The rules are mostly the same but each state has its own forms and procedures. That's why you need to know the quirks of each state you're filing in.
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Oscar Murphy
Wow, this thread has been incredibly educational! As someone just starting to learn about UCC filings, I had no idea how complex this system really is. The part about debtor names needing to be EXACTLY right is particularly eye-opening - I would have assumed "close enough" was fine. And the fact that these filings expire after 5 years seems like such an important detail that could easily be overlooked. I'm definitely going to create a tracking system for continuation dates from day one. One question though - if you're dealing with a borrower that operates in multiple states, do you need to file UCCs in each state where they have collateral, or just their home state?
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Emily Jackson
•Great question about multi-state filings! Generally, you file where the debtor is located (their chief executive office), not where the collateral is physically located. But there are exceptions - like for fixture filings, timber, or certain agricultural liens. For a corporation, you'd typically file in their state of incorporation. The tricky part is when they move or reorganize - you might need to file in both the old and new jurisdictions during the transition period. It's definitely worth consulting with legal counsel on complex multi-state deals to make sure you don't miss anything!
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