UCC Document Community

Just went through this exact scenario three months ago. UCC-1 expired on construction equipment financing. Had to file new UCC-1, update loan documentation, and explain the gap to our insurance company since they also track our secured debt. The 5-year rule is non-negotiable - file continuation between months 54-60 or start over completely.

Just to add some practical advice - when you file your new UCC-1, double check that your debtor name matches EXACTLY how it appears on your corporate documents and loan agreement. Even minor variations like "Inc." vs "Incorporated" or missing middle initials can make the filing legally ineffective. Also consider filing in all states where your equipment might be located or moved to, not just your home state. We learned this the hard way when we relocated manufacturing equipment across state lines and discovered our security interest didn't follow.

For what it's worth, I've seen this happen with smaller regional lenders who don't have strong UCC procedures. They focus on the loan documentation but forget about the perfection requirements. Always worth doing a comprehensive UCC search and document review before taking a position on any collateral.

This is a textbook case of why perfection matters under Article 9. That previous lender is fundamentally misunderstanding secured transactions - a security agreement alone only gives you attachment, which creates rights against the debtor but not against other creditors. Without perfection (typically through UCC-1 filing for equipment), they're effectively unsecured and subordinate to any properly perfected security interest you file. Since the equipment has been at the borrower's facility for over two years, there's no possession perfection either. You should definitely challenge their claim and proceed with your UCC-1 filing - their unperfected interest won't give them priority over your perfected one.

For what it's worth, I've never had issues with Solar Mosaic terminations, but I always request them in writing immediately after payoff. Maybe that's the key - being proactive instead of waiting for them to do it automatically.

I actually work in UCC filings and see this Solar Mosaic delay issue constantly. Here's what you need to know: first, check if your state has a statutory deadline for UCC terminations after loan satisfaction - some states require it within 20 days, others within 60. If Solar Mosaic is past that deadline, you have grounds for a formal complaint. Second, before escalating, definitely verify your documents match exactly - I've seen terminations held up for months over a single comma difference in the debtor name. The document verification tools mentioned here are worth trying. If everything matches and they're still dragging their feet, send a demand letter referencing your state's UCC Article 9 requirements for prompt termination. Solar Mosaic responds much faster when they know you understand the legal framework.

Last thought on this - if you're doing quarterly lien audits anyway, might be worth checking out Certana.ai's UCC document verification. I started using it after our audit found several name mismatches between our UCC-1s and the actual corporate records. It's saved us from some potentially serious perfection issues. Just upload your filings and it automatically flags inconsistencies. Makes the audit process much more thorough without adding manual work.

Great discussion here! I've been lurking in this community for a while but finally decided to jump in since I'm dealing with similar UCC filing challenges at my credit union. Just wanted to add that the American Law Institute website also has the official comments available for free, though like others mentioned, the formatting isn't great. What I've found helpful is downloading the PDF version and using the search function to quickly find relevant sections. For your mixed collateral situation with equipment + inventory, one approach we've used is to include both in a single UCC-1 but use separate security agreement schedules. This gives you the flexibility to amend or release specific collateral types without affecting the entire filing. Also, regarding the quarterly lien audit process - we implemented a simple tracking spreadsheet that includes filing dates, continuation deadlines, and links to the actual filed documents. Has saved us from missing renewal deadlines on several occasions.

One last piece of advice - double-check what state you need to file in. It's usually the state where your business is organized/incorporated, not necessarily where you're located or where the equipment will be used. If you file in the wrong state, the whole thing is useless.

Thanks everyone for all the helpful advice! This is way clearer now. Just to make sure I have this right - I need to file a UCC-1 in Delaware (since we're incorporated there) with our exact legal name from our articles of incorporation, include a specific description of the equipment as collateral, and get this done before or shortly after the loan funding. I'm definitely going to check out that Certana tool to verify everything before filing - sounds like it could save me from making costly mistakes. Really appreciate everyone taking the time to explain this stuff!