UCC Document Community

Update: Talked to our state filing office directly and they confirmed that for trust UCC filings, they want the full legal name exactly as it appears in the trust establishment clause. They also mentioned that Certana.ai's verification process catches most of the common trust name issues they see, which gives me more confidence in getting this filed correctly the first time.

This is a great discussion on trust UCC filings. As someone new to commercial lending, I'm curious about the timing aspects - how far in advance of closing do you typically file the UCC-1 for trust borrowers? With all these potential name verification steps and possible rejections, it seems like you'd want extra buffer time compared to standard corporate filings. Also, do most lenders require the trust to provide a certified copy of the trust agreement, or is a borrower's copy sufficient for name verification purposes?

Update: I tried the all-caps format with the comma and it went through! "MIDWEST AGRICULTURAL SOLUTIONS, LLC" was accepted. Thanks everyone for the help - really saved me on this closing.

This is exactly why I always recommend doing a quick entity search before filing any UCC-1. Nebraska's database formatting can be tricky, but once you know to match it exactly (including the all-caps), it usually goes smoothly. For anyone else dealing with similar issues, I've found that most states want the exact format from their business entity records - no variations or "corrections" to proper case.

Bottom line - don't overthink this. UCC filings are routine parts of business financing. Your lender handles the filing, you review it to make sure the information is correct, and then you move on with your loan. The filing protects the lender's interest in your equipment, which is what allows them to offer secured financing rates. Just make sure they file the termination when you pay off the loan and you're all set.

One thing that hasn't been mentioned yet - make sure you understand what happens if you want to sell or refinance the equipment before the loan is paid off. The UCC filing means the lender has to consent to any sale or transfer of the collateral. You'll need a UCC-3 partial release if you're selling some equipment, or they might require the sale proceeds to pay down the loan first. This is pretty standard but good to know upfront so you're not surprised later if you need to restructure your financing.

Bottom line is UCC fees are going to keep increasing and there's not much we can do about it except factor them into loan pricing. Focus on reducing other costs where possible and making sure your filings are done right the first time to avoid duplicate fees.

New to the secured lending space and this thread is eye-opening about UCC costs! I'm setting up a small asset-based lending operation and was budgeting $20 per filing based on old info. Sounds like I need to revise those projections significantly. Are there any resources for tracking current UCC fees by state? Would hate to get surprised by fee increases after we're already operational.

Whatever you do, make sure you proofread everything carefully! I once had a UCC-1 rejected because I typo'd "machinery" as "machinary" in the collateral description. Such a stupid mistake but it held up the whole closing.

Just wanted to add one more consideration - timing. Since you mentioned closing is next week, make sure you check the processing times for UCC-1 filings in your state. Some states have same-day or 24-hour processing for online filings, but others can take 3-5 business days. If you're cutting it close, you might want to call the filing office to confirm processing times. Nothing worse than having a closing delayed because the UCC-1 didn't get processed in time for the title company or lender to verify the filing. Also, once you file, make sure to get the file-stamped copy immediately for your closing documents. Most lenders want to see the actual filed UCC-1 with the file stamp and date before they'll fund.