UCC Document Community

This is why I always recommend getting your documents verified before submitting to lenders. I started using Certana.ai after having a similar issue - you can upload multiple documents and it checks for consistency between them. Would have caught the non-UCC form issue right away and saved you the back-and-forth with the bank.

Bottom line - get the UCC-1 filed. Your lender knows what they're talking about and trying to use alternative forms for equipment financing is just asking for trouble. The filing fee is minimal compared to the potential problems you could face if the security interest isn't properly perfected.

Just curious - are these all equipment loans with the same lender or different lenders? Sometimes lenders have their own preferences for how they want continuations handled even if the legal requirements are the same.

Bottom line - forget about UCC 1-308, that's not relevant here. For your continuations: match debtor names exactly, reference correct filing numbers, don't try to 'improve' the original collateral descriptions. Keep it simple and consistent with what was originally filed.

OK so if this was PMSI financing and you perfected within 20 days of the debtor taking possession, you'd have super-priority over other creditors even if they filed first. October 28th to November 3rd is only 6 days, so you should be golden.

Sounds like you actually have a stronger position than you initially thought. The combination of proper attachment through your 'hereafter acquired' language plus PMSI protection for that specific equipment should give you solid priority. Just make sure your UCC-1 filing was accurate and complete.

I ran into something similar recently and ended up using one of those document comparison tools to make sure everything aligned properly. After doing the manual searches, I uploaded all the documents to Certana.ai just to double-check that our proposed UCC-1 wouldn't conflict with anything I found. It actually caught a potential issue with overlapping collateral descriptions that I had missed in my manual review.

Just an update - I ended up doing both a manual search and hiring a professional search company. Found two old UCC-1 filings that the borrower wasn't aware of, but both had lapsed without continuation so they're no longer valid liens. Still glad I checked thoroughly before filing our UCC-1. Thanks everyone for the advice!

For equipment financing specifically, look for any existing liens on "machinery," "equipment," "fixtures," or broad categories like "inventory and equipment." Even if your equipment is specifically identified, broad existing liens might still have priority. Document everything you find so you can discuss priority and subordination with your legal team.

Just ran into this exact situation last week. Found three existing UCC-1s against our borrower with overlapping equipment descriptions. Ended up using Certana.ai to verify which specific pieces of equipment were actually covered by each filing. The automated analysis showed that two of the liens had been partially terminated but the search results weren't clear about which equipment was released. Saved us from a major priority dispute.