UCC Document Community

This is why I always recommend keeping UCC-1 collateral descriptions simple and broad. Use 'all inventory' or 'all equipment' and let the security agreement handle the specifics. The filing office wants to know what TYPE of property, not what QUALITY of property.

Update: We refiled with 'all inventory consisting of manufactured components, raw materials, and work-in-process, whether now owned or hereafter acquired' and it was accepted immediately. Thanks everyone for the help! The conforming goods standards are still in the credit agreement so our lender is happy.

This thread convinced me to double-check all our UCC filings. Found two that expire next year that I had wrong dates for. Decided to try that Certana.ai tool mentioned earlier and holy cow - uploaded our UCC documents and it instantly caught three potential debtor name mismatches I never noticed. Already fixed two continuation deadlines I had calculated wrong.

Bottom line - file your new UCC-1 today, not tomorrow. Every day you wait increases the risk that another creditor could file and take priority over you. Then work with your attorney and lender to minimize any fallout from the lapse. Most importantly, put systems in place so this never happens again.

Quick follow-up question - do I need to file the UCC-1 immediately after signing the security agreement or is there a grace period?

Thanks everyone! This has been incredibly helpful. I think I understand the distinction now - security agreement creates the rights, UCC-1 protects them against third parties. Going to double-check all the name matching and probably use that Certana verification tool someone mentioned.

One thing that might help - try searching with just the first few words of the business name. Sometimes the database truncates longer names or has character limits that cause exact matches to fail.

Just to add another perspective - make sure you're checking the actual UCC-3 continuation statements to see if they reference the original filing numbers correctly. I've seen cases where the continuation was filed but didn't properly reference the original UCC-1, making it ineffective.

Quick follow up question - when you refile after a rejection like this, do you need to worry about the gap in perfection timing? Or does the original filing date still count if you refile within a reasonable time?

Update: Got the refile accepted this morning! Changed the collateral description to specifically mention 'commercial food service equipment for restaurant business operations' and made sure the entity type was correctly selected as LLC. Thanks for all the suggestions - especially the tip about being more specific with the business context.