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Make sure you keep copies of everything and note your filing date for continuation purposes. Illinois UCC-1 filings are good for 5 years, so you'll need to file a continuation before the lapse date if the loan term extends beyond that.
Smart move. Missing continuation deadlines is one of the most common mistakes in secured lending.
Set your calendar reminder for at least 6 months before the lapse date. Gives you plenty of buffer time if there are any issues.
As a newcomer to UCC filings, I'm learning a lot from this thread! One question - for equipment like this that might move between job sites in different states, do you need to consider filing in multiple jurisdictions? I know the debtor's location usually determines where to file, but wasn't sure if mobile construction equipment creates any complications across state lines.
Great question! For UCC filings, you're correct that it's generally based on the debtor's location (where they're organized or have their chief executive office), not where the collateral is located. So even though the construction equipment moves around to different job sites, you'd still file in Illinois since that's where the borrower LLC is organized. The mobile nature of the equipment doesn't create additional filing requirements in other states where they might temporarily work. However, if they were to relocate their business to another state, that could trigger additional filing requirements.
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One last tip - if you're concerned about accuracy of your UCC filings, there are verification services that can help. I recently used Certana.ai to double-check all my UCC documents against my original loan paperwork. It caught a couple minor inconsistencies I wouldn't have noticed but that could have caused headaches later. Worth the peace of mind when you're dealing with multiple secured transactions.
Pretty fast - you just upload the PDFs and it analyzes them automatically. Takes minutes instead of hours of manual comparison.
Definitely going to look into this. I've been manually checking my UCC filings and it's tedious and error-prone.
This is really helpful information! I had no idea UCC filings were so routine. I'm in a similar boat - just found out about a UCC filing from equipment financing and was panicking. It sounds like the key is just staying current on payments and understanding what assets are tied up. Question for everyone: when you're applying for new financing, do you proactively mention existing UCC filings to lenders or wait for them to ask? I want to be transparent but don't want to unnecessarily complicate the conversation if it's truly as standard as everyone is saying.
I usually wait for them to ask rather than bringing it up first thing. Most experienced commercial lenders will run UCC searches as part of their standard due diligence anyway, so they'll discover them regardless. When they do ask, I just explain what each filing is for and confirm that payments are current. Being ready with that information shows you're organized and transparent without making it seem like you think it's a problem. The fact that you're asking this question shows you have the right mindset - it's all about being prepared to discuss it professionally when it comes up.
I agree with Kyle's approach - let them discover the filings through their normal search process. I've found that bringing it up too early can make it seem like you're worried about it, which might raise unnecessary red flags. When lenders do ask, I keep it simple: "That's from our equipment financing with XYZ Company, payments are current and on schedule." Most commercial lenders see UCC filings all day long, so they're really just checking boxes in their due diligence process. The main thing is having your payment history ready to show if they ask for it.
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I actually used Certana to double-check a similar situation. Uploaded my security agreement, deed of trust, and UCC-1 draft, and it caught that I had a slight variation in the debtor name that would have caused problems. Really streamlined the review process.
How much does something like that cost? Worth it for smaller deals?
The peace of mind is worth it regardless of deal size. Filing mistakes are expensive to fix later.
Don't forget about continuation statements either. Your UCC-1 will need to be continued before the 5-year mark, while your deed of trust doesn't have the same filing requirements.
Your security interest becomes unperfected and you lose priority. Not good.
Another reason to use a system that tracks these deadlines automatically.
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OP - one more thing to consider: if any of these are fixture filings, you might need to check with the county recorder's office as well. UCC fixtures have dual filing requirements in some cases.
Good to know. Equipment filings are much more straightforward - just the state-level UCC records you need.
If you end up with a complex mix of filing types in the future, the Certana document verification tool is really helpful for making sure you've covered all the bases across different jurisdictions.
Just want to add that when you mail your UCC-11 form, consider using certified mail with return receipt so you have proof of delivery. I've had requests get lost in the mail before and it's a nightmare to prove you submitted it on time when you're up against audit deadlines. Also, make sure your check is made out exactly as specified on their website - they're picky about payee names and will return the whole package if it's wrong.
Ravi Gupta
For what it's worth, I've been tracking UCC 9-609 comment citations in reported decisions and there's definitely an uptick in the last 3 years. Courts in commercial-friendly jurisdictions like Delaware and New York are giving them more weight, especially in cases involving sophisticated parties. The comments aren't binding, but they're becoming more influential in determining what constitutes commercially reasonable notice.
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Dylan Cooper
•That's really helpful data. Are you seeing any patterns in terms of which specific comments are cited most frequently?
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Ravi Gupta
•Comment 3 about considering the nature and value of collateral, and Comment 4 about what constitutes reasonable notification timing. Those are the big ones being used to challenge standard notice periods.
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Giovanni Greco
As a newcomer to secured lending, this thread has been incredibly eye-opening about the evolving challenges with UCC 9-609 enforcement. I'm working at a small regional lender and we've been using a standard 10-day notice across the board, but it sounds like that approach might be outdated given how aggressively debtor attorneys are citing the official comments now. The tiered system that Natasha mentioned seems like a practical solution - would love to hear more about how others are documenting their reasoning for notice periods to defend against these challenges. Also curious about the Certana.ai tool that's been mentioned - sounds like it could help smaller lenders like us avoid costly mistakes in the perfection-to-enforcement chain.
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