UCC Document Community

Update us when you get it resolved! This is exactly the kind of situation that helps other people know what to expect. UCC termination problems are way more common than they should be.

This thread is incredibly helpful - I'm dealing with something similar right now. My lender filed the UCC-3 termination but used a slightly different collateral description than the original UCC-1, so now I have both filings showing up in searches. The new lender's underwriter is flagging it as a potential issue. Has anyone successfully gotten a lender to file a corrected termination statement? I'm wondering if I should push them to withdraw the partial one and file a complete termination, or if there's another way to clean this up.

Update: I ended up filing a UCC-3 amendment to specifically include 'intellectual property rights arising from use of equipment and licensing income therefrom' in the collateral description. Client is more comfortable with the explicit coverage and it wasn't expensive. Thanks for all the input. Sometimes the peace of mind is worth the extra filing fee.

As someone new to UCC filings, this thread has been incredibly educational! I'm curious about the timing aspect - how long do you typically have to file an amendment after discovering a potential proceeds coverage gap like this? Also, when you're drafting the initial UCC-1, are there any red flags or questions you ask clients upfront to identify potential future proceeds issues? It seems like anticipating these licensing scenarios during the initial filing could save a lot of headaches later. The Certana.ai tool mentioned sounds really useful for someone like me who's still learning to spot these coverage nuances. Thanks for sharing all this practical insight!

Sounds like you've got a solid plan - Delaware UCC-1 for the corporate debtor and Ohio fixture filing for the bolted-down equipment. Document everything in your file so if anyone questions it later you can show you considered all the options.

As someone who's dealt with multi-state UCC filings before, I'd echo what others have said about filing in Delaware for the main UCC-1 since that's where the corporation is incorporated. However, given that you mentioned the equipment includes fixtures bolted to concrete in Ohio, I'd strongly recommend doing a dual filing approach - the standard UCC-1 in Delaware for the movable equipment, and a fixture filing in Ohio for anything that's permanently attached to the real estate. The fact that your client's lease mentions the presses as improvements to the property is a pretty strong indicator they should be treated as fixtures. It's worth the extra filing fee to avoid any perfection issues down the road, especially on a significant credit facility where your compliance team is already watching closely.

I do similar volume in Georgia and my total UCC costs run about $200-300 per month including initial filings, amendments, and terminations. Your estimate of 20-30 per month should put you in that ballpark assuming mostly single debtor filings.

One more thing - if you're new to Georgia UCC filings, double check your collateral descriptions. Georgia is pretty liberal compared to some states but you still want to be specific enough. Vague collateral descriptions can cause issues down the road even if the filing gets accepted initially.

Bottom line on your equipment deal: $1 purchase option = finance lease = UCC filing required. Don't let your credit committee think otherwise. The fixture filing is a separate issue but definitely worth investigating given the permanent mounting. Get your basic UCC-1 filed ASAP to secure your position.

As someone new to equipment finance, this thread has been incredibly educational. The consensus seems clear that the $1 purchase option makes this a finance lease requiring UCC filing. I'm curious though - for future deals, are there any red flags or warning signs in lease terms that would immediately signal "this needs UCC filing" versus situations where it might be genuinely unclear? Trying to build my knowledge base for evaluating these transactions quickly.