UCC Document Community

Just to add one more perspective - I work in commercial lending and see both forms daily. UCC-1 is filed when we make the initial loan. UCC-3 gets used throughout the loan lifecycle - sometimes for continuations, sometimes for amendments when collateral changes, and always for termination when the loan is paid off. The important thing is keeping track of the original filing number because every UCC-3 has to reference it correctly.

Thanks everyone for the explanations! This is making much more sense now. So for my equipment financing renewals, I'll need to check if the original UCC-1 is still within the 5-year window. If it's getting close to expiration, the bank will file a UCC-3 continuation. If they're changing loan terms or adding equipment, that would be a UCC-3 amendment. And when we eventually pay everything off, they'll file a UCC-3 termination. I appreciate everyone breaking this down in plain English instead of the legal jargon on the state websites!

For anyone else dealing with letter of credit rights in the future: ALWAYS get copies of the actual LC documents before preparing your UCC filings. Don't rely on summaries or descriptions from the borrower. I learned this the hard way when a client gave me the wrong beneficiary name and we had to refile everything. Now I make document review the first step in any LC-secured transaction.

As someone new to letter of credit collateral, this thread has been incredibly educational. I'm working on my first LC-secured deal and was planning to just use standard UCC language, but now I see how specific the collateral description needs to be. Quick question for the group: when you're dealing with a revolving LC that might be renewed or extended, do you need to file amendments each time the LC terms change, or does the original filing cover future modifications as long as the LC number stays the same? Also, the Certana.ai tool mentioned throughout this thread sounds like exactly what our small firm needs. We don't have the volume to justify expensive document review software, but something that can catch these name and description mismatches would be invaluable.

Update: Went back and completely rewrote our collateral description with individual serial numbers for each piece of equipment. Also removed any reference to 'agricultural lien' and used standard security interest language. Filed this morning and it was accepted within 2 hours! Thanks everyone for the guidance. The key was definitely being more specific with equipment descriptions and using proper UCC terminology instead of mixing in ag lien language.

This is such a helpful thread! I'm new to UCC filings for agricultural equipment and this whole conversation is a goldmine of practical advice. The distinction between "agricultural lien" and "security interest in farm equipment" is something I definitely would have missed. Question for the group - are there any other common terminology pitfalls like this that trip up newcomers? I want to make sure I'm not making similar mistakes on my first few ag equipment filings.

Just went through this with a 2020 filing myself. One thing I learned - double-check that the secured party information hasn't changed. If your client moved offices or changed their legal name, that could complicate the continuation.

Thanks everyone for the detailed responses! This has been really helpful. Just to summarize what I've learned: my lapse date is exactly March 15, 2025 (5 years from filing), I can file the continuation anytime after September 15, 2024, and I need to make sure I check for any amendments and verify all the party information matches exactly. I think I'll get the UCC-3 prepared next week and file it in January to give myself plenty of buffer time. Better safe than sorry with these deadlines!

Don't forget about termination procedures either. When the loan is paid off, you'll need to terminate the fixture filing in both the UCC records and the real estate records. It's not automatic and forgotten fixture filings can cloud real estate titles.

Thanks everyone for all the detailed advice! This has been incredibly helpful. Just to summarize what I'm understanding: I need to file a UCC-1 fixture filing that goes into both UCC records AND real estate records, include a detailed legal property description (not just street address), verify my leasehold interest is sufficient, be prepared for dual filing fees throughout the life of the loan including continuations and termination, and make sure the collateral description is specific enough for fixture filing standards. I'm going to check out Certana.ai to verify my documents are consistent before filing, and I'll call the county clerk ahead of time to confirm their specific procedures. Did I miss anything major?