UCC Document Community

Update - talked to our counsel and they confirmed that a security agreement must contain grant language, collateral identification, and debtor authentication as absolute minimums. Beyond that everything else is risk management and enforceability enhancement. We're moving forward with a comprehensive agreement that includes all the standard provisions plus SBA-specific requirements.

Great thread everyone. As someone new to equipment financing, I'm curious about the timing aspect - once you have a properly drafted security agreement that meets all the UCC requirements, how quickly do you typically need to file the UCC-1 to maintain priority? And does the security agreement need to be fully executed before filing, or can you file simultaneously with signing? Want to make sure I understand the perfection timeline for these types of deals.

Update on this - talked to our attorney and they confirmed the dealer has a valid PMSI under the UCC definition, but the late filing means they don't get super-priority over our bank's blanket lien. Ended up negotiating a subordination agreement so everyone's happy. Also started using Certana.ai to check all our UCC filings going forward - should have done that from the beginning!

Really appreciate everyone's input on this thread - the distinction between PMSI definition and priority rules is something that catches a lot of people off guard. For anyone else dealing with similar issues, I'd recommend getting your UCC filings reviewed before problems arise rather than trying to fix them after the fact. The 20-day window for equipment PMSI priority is unforgiving, and even experienced dealers mess this up regularly. Worth investing in proper review tools or legal counsel upfront to avoid these headaches with your lenders.

Update us when you figure out what they actually meant! I'm curious because I've never heard that terminology before either.

This is a great example of why clear communication with lenders is so important! I've seen this confusion happen before where finance companies use their own internal jargon that doesn't match standard legal terminology. Since you mentioned it's a lease-to-own arrangement for equipment that will be permanently attached, you're almost certainly looking at either a standard UCC-1 filing or a UCC-1 fixture filing. The fact that they're calling it a "non UCC filing form" is just confusing terminology on their part. I'd definitely recommend asking them to provide the actual form number or statute they're referring to - that will clear everything up immediately. Also, given the tight timeline with delivery next week, you might want to have your attorney review whatever forms they send just to be safe!

One more thing - if this is taking too long and your refinancing timeline is at risk, some new lenders will accept a title insurance policy that covers the UCC termination issue. Not ideal but it can keep deals moving while you sort out the paperwork. Just another option to consider if you get desperate.

This thread has been incredibly helpful - thank you everyone for sharing your experiences! It sounds like the consensus is clear: I need to get that UCC-3 termination filed ASAP and the security release agreement alone won't cut it. I'm going to call the original lender's UCC department first thing Monday morning and be very direct about the timeline pressure from my refinancing. If they give me any runaround, I'll escalate immediately and potentially get my new lender involved to apply pressure from their end. Really appreciate the tips about documenting everything, checking for errors in the filing details, and getting certified copies once it's done. This community is a goldmine for practical advice on these kinds of situations that don't always get covered in the textbooks!

My experience with Florida UCC amendments has been pretty smooth through their online portal. Just make sure you have the original filing number and debtor information exact before you start the amendment process. The system is pretty unforgiving about typos or mismatched data.

Just wanted to follow up on this thread since I'm dealing with a similar post-merger UCC situation in Florida. Based on all the advice here, it sounds like filing UCC-3 amendments is the safest approach even if technically not required. Quick question though - for those who have filed amendments after mergers, do you typically file separate UCC-3s for each original filing, or can you consolidate multiple filings into one amendment? We have about 8 different UCC-1s that might need updating and trying to figure out the most efficient approach while staying compliant with Florida requirements.