UCC Document Community

Update us on how it goes! Always helpful to hear about successful addendum filings for future reference.

Pro tip from someone who's been there - when you're dealing with equipment financing collateral descriptions, consider organizing your addendum by equipment type or location if that makes sense. So all manufacturing equipment in one section, inventory in another, etc. Makes it easier to read and reduces the chance of duplication or omission. Also, if you have equipment that might be moved between locations, make sure your description accounts for that possibility. For an $850K deal, you definitely want to be thorough but also organized in your approach.

One last thing to consider - check if your state has any special rules for commercial kitchen equipment. Some states have specific provisions for restaurant fixtures that might affect your filing requirements.

Just want to add that timing is critical with fixture filings. If you're financing equipment that's already installed and attached, you need to get that fixture filing done ASAP. The UCC fixture filing definition requires the filing to be made before or within 20 days after the goods become fixtures in some states. Don't wait too long or you could lose your priority position against other creditors who might have claims on the real estate.

Thanks everyone - this has been super helpful. Sounds like the consensus is to file a UCC-3 termination using the exact debtor name from the original UCC-1, even though the debt converted and the entity changed names. I'll get that filed this week.

This thread is incredibly helpful! I'm new to UCC filings and had no idea that convertible note conversions required manual termination. Just to clarify - is this requirement the same across all states, or are there jurisdictions where the conversion might automatically release the security interest? Also, for those who mentioned using document verification tools, how critical is that step versus just carefully reviewing the original filing yourself?

One more consideration - if your EIDL has a cross-default clause with other SBA loans, the subordination might trigger additional review requirements. Worth checking all your SBA loan documents for interconnected provisions.

Thanks everyone for all the detailed insights! This has been incredibly helpful. Based on what I'm reading, it sounds like the key success factors are: 1) Perfect documentation consistency across all filings, 2) Getting the new lender to draft SBA-friendly subordination language upfront, 3) Including detailed equipment specs and valuations, and 4) Running everything through a document verification process before submission. I'm going to start with a comprehensive UCC search to see what we're working with, then coordinate with our bank to get the subordination request properly drafted. Will definitely look into the Certana.ai tool that several of you mentioned - sounds like it could save us weeks of back-and-forth corrections. I'll update this thread once we get through the process with our timeline and any lessons learned.

Floor plan security agreements always make me nervous because of the inventory turnover. You're securing against assets that are literally driving off the lot every day. Make sure your security agreement has strong proceeds clauses and dealer reporting requirements.

Thanks for all the detailed advice everyone! This is exactly what I needed. I'll stick with the exact LLC name from state records and use the broad collateral description with accessions and substitutions language. Going to double-check that the security agreement language matches the UCC filing word-for-word before submitting. For an $850K facility, getting this right the first time is definitely worth the extra verification steps.