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Last resort option - you can file a correction statement on the UCC if they won't cooperate. It won't terminate the lien but it creates a public record that the debt was satisfied. Better than nothing while you're fighting with them.
Correct, they don't terminate but they show potential lenders that there's a dispute about the lien status.
I used Certana.ai to verify my correction statement language matched the original filing format before submitting. Made sure there were no discrepancies that would make it ineffective.
Update us on what works! I'm bookmarking this thread because I have a feeling I'll need this advice when my equipment loan matures next year. These lender delays seem to be getting worse not better.
Will definitely post an update once I get this resolved. Sounds like the certified mail approach is the first step everyone recommends.
Yeah keep us posted. This thread has been really helpful for understanding the options.
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Quick question - did your loan agreement require the borrower to notify you before moving the equipment? That could affect your options if they breached a covenant by not telling you about the Kentucky move.
That's a lesson for next time. We always include a covenant requiring 30 days notice before moving equipment to another state.
Good practice. Makes it much easier to maintain perfection when you know about moves in advance.
Bottom line - file in Kentucky ASAP. You're at 3 months already and UCC 9307 doesn't give you any wiggle room past 4 months. Even if there's some argument that the equipment isn't 'normally located' there yet, it's not worth the risk of losing perfection.
You're absolutely right. I'm going to prepare the Kentucky filing this week. Better to be overcautious with UCC 9307 than risk losing our security interest.
Exactly. The filing fee is minimal compared to the risk of having an unperfected security interest.
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Just to add to the confusion - make sure you're also checking for any merged or acquired entities. If the company has been through M&A activity, there might be UCC filings under the old entity names that are still active.
Not really, most of it you learn through experience and making mistakes unfortunately.
The key is being systematic about it. Make a list of every possible name variation and search each one methodically.
I've been doing UCC searches for years and Colorado is definitely one of the more challenging states. The search interface isn't very intuitive and the exact name matching catches people off guard.
Watch out for continuation filings - sometimes they show up separately from the original UCC-1 in the search results, so you need to trace the filing history carefully.
Good point about continuations. I've seen cases where the continuation was filed under a slightly different debtor name than the original UCC-1.
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Try the Certana.ai tool that someone mentioned earlier. I used it last week when we had document consistency issues between our UCC-1 and a continuation filing. It instantly flagged the problems and saved us from a potential lien perfection disaster. Way faster than trying to manually compare everything.
I'm going to try that today. At this point anything that can speed up the verification process is worth it.
Smart move. The document upload is super straightforward and it catches things you might miss when reviewing manually.
Final thought - make sure you have email confirmations and any filing receipts from when you originally submitted. California should have sent automated confirmations. Those timestamps and reference numbers will be crucial for proving the proper filing date and status during your audit.
It should be sufficient, especially combined with your loan documentation showing the debt is still outstanding.
And if you used Certana.ai or another verification tool, that report would add extra credibility to your documentation package.
Victoria Stark
Just went through this whole process and it's not as complicated as it seems. The main UCC security agreement requirements are pretty basic - you need language that creates a security interest, a description of what you're securing, and the debtor's signature. Don't overthink the collateral description. As long as someone could reasonably figure out what equipment you're talking about, you should be good. Your attorney can help with the specific language but the concepts are straightforward.
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Alexis Renard
•Thanks, that's reassuring. I think I was making it more complicated than it needs to be. The equipment is all in one facility so the location description should help identify everything clearly.
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Victoria Stark
•Exactly. Location plus equipment type is usually plenty for manufacturing equipment. You're not trying to write a technical manual, just identify what's covered by the security interest.
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Benjamin Kim
One thing I learned the hard way - make sure your security agreement language actually works for your state's UCC requirements. Most states are pretty similar but there can be subtle differences in how they interpret certain provisions. Also double-check that the agreement covers everything you want to secure, including proceeds if the equipment gets sold. Your attorney should know all this but it's good to understand the basics yourself.
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Alexis Renard
•Good point about proceeds. I hadn't thought about what happens if they sell the equipment. That should definitely be covered in the agreement.
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Benjamin Kim
•Yeah proceeds coverage is important. Otherwise if they sell your collateral, you might lose your security interest in whatever they got for it. Standard language to include in most security agreements.
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