UCC Document Community

Make sure you're not running into a debtor name issue disguised as a collateral description problem. I've seen SOS offices give generic rejection reasons when the real issue is the debtor name not matching their business records exactly. Double-check that your debtor name on the UCC-1 matches exactly what's on file with the Secretary of State for the farming operation.

Farm products filings are definitely more art than science. I've had success with really comprehensive descriptions like "All farm products of every kind and description, whether now existing or hereafter acquired, including without limitation: (a) crops, whether planted, growing, or harvested; (b) livestock of every kind; (c) supplies used or produced in farming operations; (d) products of crops or livestock; and (e) all proceeds, whether cash or non-cash, from the sale, lease, license, exchange or other disposition of any of the foregoing." It's verbose but it works.

Been doing Nevada UCCs for 15 years and the comma issue never gets old. The state system is very literal about name matching. Use their exact format and you'll be fine.

Update: Filed with the exact name from nevada business name search and it was accepted within 24 hours. Thanks everyone for the advice about using the state database version rather than the loan docs!

The SOS systems are so picky about form of ucc submissions. I had three rejections last year before I figured out their specific formatting requirements. Now I always call their help line before filing anything complex.

Update us when you get it sorted out! I'm dealing with similar equipment financing and want to make sure I use the right form of ucc approach from the start.

Real quick example from this morning: Filed UCC-1 for ABC Widgets LLC (debtor), First Bank Equipment Finance (secured party), collateral was 'all machinery and equipment used in debtor's widget manufacturing operations.' Simple and specific. Filed online in Ohio, cost $30, took 10 minutes once I had all the info ready.

One more thing nobody mentioned - search the UCC records BEFORE you file to see what else might be out there. You want to know if other lenders have prior liens on the same collateral. Most SOS websites have search functions for this.

Just went through something similar with a $600k equipment purchase. Seller's bank was dragging their feet on the UCC-3 terminations because they needed internal approvals. We ended up extending the closing date twice before everything got sorted out. Frustrating but definitely better than closing with active liens.

Why not make the UCC terminations a condition precedent to closing? Put it right in the purchase agreement that seller must provide evidence of all UCC-3 terminations being filed and effective before the closing can occur. That way it's legally binding and not just a gentlemen's agreement.