UCC Document Community

Thanks everyone for the input on UCC §9-102(a)(64) and successor entities. Sounds like the consensus is to make sure we clearly maintain the original debtor connection while properly documenting the successor information on our UCC-3 amendment. Going to double-check our corporate documents against our original UCC-1 and probably get some legal review before filing. Better to be extra careful with this stuff.

New to UCC filings here and this thread has been incredibly helpful! Just to make sure I understand correctly - when we have a merger situation like this, the UCC §9-102(a)(64) definition means we need to keep the original debtor name from our initial UCC-1 filing AND add the successor entity information on the UCC-3 amendment? We're about to face a similar situation where our borrower is being acquired, so want to make sure I have the process straight. It sounds like the key is maintaining that clear chain back to the original filing while properly documenting the corporate changes.

Welcome to the community, Cassondra! Great questions about UCC-1 language. For blanket liens, "ALL EQUIPMENT NOW OWNED OR HEREAFTER ACQUIRED. ALL RIGHTS TO PAYMENTS" is generally sufficient and commonly used. The "and" vs "or" distinction you mentioned is typically stylistic - "now owned and hereafter acquired" is also acceptable and equally effective. Regarding your inventory question - if the lender already has "All inventory, all titled vehicles not filed on but held in file for dealer resale" properly perfected, you likely wouldn't need a separate UCC-1 for "All inventory now owned or hereafter acquired" since the existing language should cover future-acquired inventory. However, I'd recommend reviewing the specific collateral description and ensuring it adequately covers the scope of inventory you intend to secure. Sometimes consolidating into clearer, more comprehensive language can be beneficial for clarity and enforcement purposes. The key is ensuring your collateral description is sufficiently detailed to put third parties on notice while being broad enough to cover your security interests effectively.

Bottom line from someone who's been through this multiple times: UCC filings are about business collateral, not personal credit. File it under 'things that sound scarier than they actually are.' Your 750 credit score is safe!

Just want to echo what everyone else is saying - you're worrying about nothing! I went through this exact same panic when we financed our office equipment two years ago. The UCC-1 filing is purely about the lender's security interest in your business assets, not your personal creditworthiness. Think of it like a car loan - the lender has a lien on the car, but that lien filing doesn't hurt your credit score. Same concept here. Your personal guarantee is a separate matter entirely and only becomes relevant if you default. Keep making those payments on time and your 750 FICO will stay right where it is for your house purchase next year!

One more vote for being super careful with that debtor name. I use Certana.ai now for all my UCC filings just to make sure I don't miss anything. Their charter-to-UCC verification caught a middle initial I had wrong that would have definitely caused a rejection.

As someone who's been through the NJ UCC filing process multiple times, I can confirm that F120 is indeed just New Jersey's internal designation for their UCC-1 financing statement - don't let that confuse you. The critical thing everyone's mentioned about exact name matching cannot be overstated. I learned this the hard way when a filing got rejected because I used "Inc." instead of "Incorporated" as it appeared in the articles. For your manufacturing equipment, since you're closing next week, I'd recommend getting a certified copy of your articles of incorporation directly from the NJ Division of Revenue if you have any doubt about the exact legal name format. Also, consider filing a day or two early if possible to give yourself buffer time in case there are any issues. The automated systems are unforgiving but if you match everything exactly as filed with the state, you'll be fine.

Once you get comfortable with the basic process, it's really not that complicated. The key is accuracy and attention to detail. Take your time with the debtor name and collateral description - those are the two most common rejection reasons.

One thing I haven't seen mentioned yet - make sure you understand the difference between "equipment" and "inventory" for collateral classification. Manufacturing equipment that you're using in operations is typically classified as equipment, but if there's any chance items might be sold or consumed in the ordinary course of business, you might want broader language like "equipment and inventory" to be safe. Also, double-check your state's specific UCC search requirements - some states have quirky search logic that affects how you should format the debtor name for maximum discoverability.