UCC Document Community

Just to add another data point - I got approved for Kabbage funding in March and they filed a UCC-1 in Ohio about 10 days later. The filing covered accounts receivable, inventory, chattel paper, instruments, deposit accounts, and general intangibles. Pretty comprehensive but fairly standard for working capital lenders.

Based on everyone's experiences here, it sounds like Kabbage almost certainly will file a UCC-1 on your business. Given that you already have equipment financing with a UCC on file, I'd strongly recommend doing a few things before applying: 1) Pull your existing UCC filing from the PA database to see exactly what collateral is covered, 2) Contact your equipment lender to understand their policies on additional liens - some have acceleration clauses that could be triggered, 3) Ask Kabbage upfront for their standard UCC language and filing timeline. The last thing you want is to get approved, have them file a conflicting lien, and then have your equipment lender call their loan. It might be worth exploring other funding options that don't require UCCs or have more limited collateral requirements.

Glad this got resolved! Multi-state debtors always create these jurisdiction questions but the rules are actually pretty straightforward once you know the hierarchy. Organization state trumps everything for registered entities.

Great discussion everyone! As someone who's been burned by jurisdiction mistakes before, I can't stress enough how important it is to get this right the first time. For LLCs like your Delaware entity, the organization state rule under UCC 9-301(1) is definitely the way to go. One additional tip - when you file in Delaware, make sure to also check if there are any local fixture filings needed in California where the equipment is located, depending on what type of collateral you're securing. The Delaware filing covers your general security interest, but real estate-related fixtures might need additional local filings.

This delivery definition issue highlights why UCC compliance is so tricky. You can have perfect paperwork but still lose your security interest if you don't meet the perfection requirements. I've started using automated document review tools to catch these problems early. The Certana.ai system I mentioned earlier has saved us from several similar delivery definition conflicts by flagging perfection method inconsistencies during the documentation phase.

As a newcomer to UCC lending, this delivery definition issue is really eye-opening. I'm currently working on my first equipment financing deal and was planning to use delivery perfection because it seemed more secure than just filing. But reading through this discussion, it sounds like delivery perfection is actually much harder to achieve than I realized. If the borrower needs to use the equipment for their business operations, how can we ever really have the "exclusive control" that delivery perfection requires? Should I just default to filing perfection for all equipment loans where the borrower will maintain operational control?

Update us when you get this resolved! Always curious how these situations turn out and what tactics actually work with stubborn lenders.

I've dealt with this exact scenario multiple times in my practice. Here's what I recommend: First, check your original loan agreement - most contain specific language about lien release timing (usually 10-30 days). Second, file a UCC search on Georgia SOS website to confirm the lien is still active. Third, send a formal written demand citing your loan agreement's lien release clause and Georgia Commercial Code Section 9-513. Include your loan payoff confirmation, the UCC filing number, and give them exactly 5 business days to file the UCC-3 termination. Send it certified mail to both their loan servicing department AND their legal/compliance department. If they don't respond, contact the Georgia Department of Banking and Finance - they take lien release violations seriously. Most lenders will file within 48 hours once they realize you're serious about regulatory complaints.

File the UCC-1 today and then consider whether you need to amend your loan documentation. Some lenders add retroactive security agreement language or get new personal guarantees to strengthen their position after filing gaps like this.

This is a painful lesson but not necessarily fatal. File the UCC-1 immediately - today if possible. You'll lose priority to anything filed during the 8-month gap, but you still need whatever protection you can get. Run a comprehensive UCC and judgment lien search on the borrower right away to see what other creditors might have filed during your window. Also check your loan agreement carefully - some have cure periods or language that might help your position. The personal guarantees are still valid regardless of the UCC filing issue, so that's something. Document everything about how this happened and implement systematic checks going forward - this kind of error can destroy a lending business if it happens repeatedly.