UCC Document Community

One thing to watch out for is if you have a mixed situation - some goods where you're relying on automatic perfection and others where you've filed. Comment 5 could create a gap in coverage for the automatic perfection portion if it involves after-acquired property. Better to just file on everything to avoid the complexity.

Thanks everyone for the detailed explanations. This really clarifies things for me. Just to confirm my understanding: since we're filing UCC-1 financing statements for our equipment and inventory loans, Comment 5's limitation on automatic perfection for after-acquired property doesn't affect us. The comment is specifically about situations where lenders try to rely on automatic perfection (like the 20-day PMSI grace period) to cover future acquisitions, which isn't sustainable. For filed financing statements under 9-310, our standard "all equipment now owned or hereafter acquired" language should be fine as long as our security agreement matches. I think our compliance team was overthinking this - Comment 5 is more about preventing people from avoiding filing altogether rather than limiting what can be included in properly filed UCC-1s.

Just to close the loop on this - after your loan closes and gets paid off, your lender should file a UCC-3 termination statement to release their claim. That's still part of the UCC system, but it's a different form than the original UCC-1. The whole lifecycle falls under UCC Article 9 rules.

Thanks everyone for the clear explanations! This thread has been incredibly helpful. I feel much more confident going into my bank meeting now that I understand UCC is the legal framework and UCC-1 is the actual financing statement form. I'll definitely ask to review the draft UCC-1 before they file it and make sure our business name matches exactly. One follow-up question - how long does a UCC-1 filing typically stay active before it needs to be renewed?

Just to clarify - UCC 9-324 requires filing within 20 days of when the debtor receives possession of the collateral. Training delays that prevent actual use can extend this timeline if properly documented. Your Monday possession date should control, not Friday delivery.

As a newcomer to equipment financing, this thread has been incredibly educational! I'm working on my first PMSI deal and the timing requirements seemed overwhelming at first. It's reassuring to see that courts generally recognize the difference between physical delivery and actual possession, especially when specialized equipment requires training or setup. The consensus here about documenting everything thoroughly makes perfect sense - better to have too much documentation than not enough when dealing with priority issues. Thanks everyone for sharing your practical experiences with these timing challenges!

One more consideration - if your borrower has existing UCC filings from other lenders, make sure you understand the priority rules for after acquired property. First to file usually wins but there are exceptions depending on the collateral type and timing.

Thanks everyone for the helpful responses! This has been really educational. I'm going to go with the "all equipment now owned or hereafter acquired" language and make sure our security agreement matches exactly. The point about coordination between documents is crucial - I'll definitely review both together before filing. Also planning to set a calendar reminder for the continuation filing since our loan term is 7 years. One question though - should we include any specific exclusions in the collateral description or is it better to keep it broad and handle limitations in the security agreement instead?

As someone who handles equipment financing regularly, I can confirm that UCC 1-103.6 won't impact your filing at all. It's purely a gap-filling provision that allows courts to apply other legal principles when the UCC doesn't specifically address something. For your multi-entity deal, focus on nailing the debtor identification under 9-503 - this is where most rejections happen. Make sure you're using the exact legal name from each entity's organizational documents, and if any of the entities are LLCs, double-check that you include any required designations like "LLC" or "Limited Liability Company" as they appear on the charter. The equipment collateral description under 9-108 should be straightforward as long as you provide enough detail to identify the specific equipment being financed. Don't overthink the theoretical provisions - stick to the practical filing requirements and you'll avoid another rejection.

Coming from someone who's been doing UCC filings for about 8 years now, I can tell you that UCC 1-103.6 is one of those provisions that sounds more important than it actually is for day-to-day filing work. It's essentially a "catch-all" that says other areas of law can still apply alongside the UCC when there's a gap or conflict. Think of it as the UCC's way of saying "we didn't think of everything, so use common sense and other established legal principles where needed." For your equipment financing deal with multiple entities, you're absolutely right to focus on getting the debtor names perfect - that's where I see most rejections happen. The 1-103.6 provision won't help or hurt your filing accuracy, but getting those entity names exactly as they appear on the organizational documents will make all the difference. Good luck with the filing!