UCC Document Community

This has been really educational. I'm not a lawyer but work in credit analysis and always wondered about the relationship between these different legal concepts. Sounds like UCC is the practical stuff we actually use for secured lending while restatements are more academic?

This is such a helpful thread! I'm relatively new to secured transactions and was getting overwhelmed by all the different legal concepts. Reading through everyone's explanations really clarifies why UCC Article 9 is the only framework that matters for equipment financing deals like yours. The distinction between binding statutory law (UCC) versus academic guidance (Restatements) makes perfect sense now. For your Ohio filing, it sounds like you have great advice here about debtor name matching and PMSI timing. One thing I'd add - consider doing a UCC search on your debtor before filing to see what other liens might be out there. Helps you understand the priority landscape you're entering.

This is such a timely discussion for me! I just finished paying off my SBA 7(a) loan ($320K) about 2 weeks ago and received what the bank called a "loan satisfaction document." Like several others here, I can see the original UCC-1 filing is still active in my state's Secretary of State database. What's really helpful about this thread is seeing the range of experiences - from automatic terminations to people waiting months or even years. I'm definitely going to be proactive about this rather than just waiting and hoping it gets handled automatically. The advice about calling the commercial loan servicing department specifically (not general customer service) seems like the key insight. I'm also going to check my original loan documents tonight to see if there's any language requiring a written termination request, since that could explain why some lenders seem to wait for borrower action. One question for those who've been through this - is there any advantage to sending a written request for the UCC termination via certified mail in addition to calling, just to create a paper trail from day one? I'm trying to be strategic about this since I'm likely going to need financing again within the next 6-12 months.

This whole thread has been incredibly valuable! I'm actually a newcomer to the SBA loan world - just got approved for my first 7(a) loan and we're closing next month. Reading through everyone's experiences with UCC terminations is giving me a heads up on what to expect down the road when we eventually pay it off. It sounds like the key lessons are: 1) Don't assume terminations happen automatically, 2) Know exactly who to call at your bank (commercial loan servicing/UCC filing department), 3) Document everything with email follow-ups, 4) Mention any business urgency around future financing needs, and 5) Be prepared to escalate to the SBA district office if needed. One thing I'm wondering - would it make sense to ask about the bank's UCC termination process upfront during loan closing? That way I'd know their specific procedures and timelines from the beginning rather than having to figure it out later when I'm under pressure for new financing. Thanks to everyone who shared their experiences - this is exactly the kind of real-world insight you can't get from the official loan documents!

As someone who recently went through the UCC filing process for the first time, I want to emphasize how much this thread would have helped me six months ago! One thing I learned that might be useful for other newcomers: don't be surprised if your lender files the UCC-1 before your loan actually closes. My equipment lender filed it about a week before our closing date to secure their priority position, which initially worried me because I thought it meant I was already committed. But it's actually standard practice - they want to make sure no other lender jumps ahead of them in line. The filing doesn't mean your loan is finalized, just that they've claimed their spot in the priority queue. Also, if your deal falls through for any reason, make sure they file a termination statement to clear it from your record. Most lenders handle this automatically, but it's worth confirming since having an unused UCC filing on your record could confuse future lenders about your existing obligations.

This entire discussion has been incredibly helpful! As someone who's been lurking in this community for a while but just starting to explore business financing options, I really appreciate how everyone has broken down the UCC process so clearly. One thing I'm still curious about - how long does the actual UCC filing process typically take once the lender submits it? I'm wondering if there's any delay between when they file and when it shows up in the public records, since it sounds like timing and priority are so important. Also, do different states process these filings at different speeds? I'm in California and want to make sure I understand the timeline for my upcoming equipment loan discussions.

I'll add my perspective as someone who's dealt with this situation recently. Yes, your promissory note can absolutely function as a security agreement - I actually prefer this approach because it streamlines the documentation and reduces the chance of inconsistencies between separate documents. The language you described sounds sufficient, but I'd recommend having someone review it to ensure the granting language is crystal clear. One thing I learned the hard way is to make sure your collateral description is broad enough to cover future acquisitions if that's your intent - "all equipment now owned or hereafter acquired" can be much more protective than just "all equipment." Also, since you mentioned the collateral is located at a specific address, consider whether you want to limit it geographically or expand it to cover assets wherever located. The UCC doesn't require a specific location, so you have flexibility there depending on your risk tolerance and the borrower's business model.

As someone who's been doing secured transactions for about 5 years, I can confirm that promissory notes absolutely can serve as security agreements when they contain the right elements. The key is making sure your language is bulletproof - I always look for explicit granting language like "debtor grants lender a security interest in" rather than passive language like "secured by." Your collateral description sounds adequate, but given the great advice from Emma and others about future acquisitions and multiple locations, you might want to consider broadening it to "all equipment, inventory, and accounts receivable, now owned or hereafter acquired, wherever located" to give yourself maximum protection. I've found that being overly broad in the security agreement rarely causes issues, but being too narrow can definitely come back to bite you later. Also, since several people mentioned Certana.ai for document review, I can vouch for it - used it on a complex equipment financing deal last month and it caught some subtle language issues that could have been problematic. Worth the small cost for peace of mind, especially on larger deals.

Quick question - does anyone know if there's a difference between describing goods as 'equipment' vs 'machinery'? I've been using them interchangeably but wondering if I should be more consistent.

The confusion around collateral descriptions is totally understandable - I went through the same thing when I started doing secured transactions work. Here's what helped me get clarity: The UCC 9-108 "reasonably identify" standard is actually quite forgiving for most commercial transactions. You can absolutely use broad category descriptions like "all equipment," "all inventory," or "all accounts receivable." The key is avoiding "supergeneric" descriptions like "all personal property" or "all assets" that don't give any meaningful guidance about what's covered. For your rejected filing, I'd bet money it was a debtor name issue rather than the collateral description - those error messages from filing systems can be really misleading. Your description of "all equipment, machinery, and fixtures now owned or hereafter acquired" should be perfectly acceptable under the UCC. The after-acquired property language is standard and necessary for most commercial deals. One practical tip: stick with the UCC's defined categories (equipment, inventory, accounts, etc.) rather than trying to get too creative with industry-specific terms. And remember, broader descriptions are often better because they reduce the need for amendments when the debtor acquires new collateral.