UCC Document Community

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.

Just wanted to add that if this is your first time filing, it might be worth having someone experienced review your draft before you submit. A rejected filing can delay your loan closing.

Update us on how it goes! Always curious to hear success stories from first-time filers.

This thread is making me paranoid about my own filings. I should probably go back and double-check all the debtor names on our active UCCs to make sure there aren't any similar issues lurking.

Just to close the loop on this - I filed the UCC-3 amendment yesterday and it was accepted by Washington state this morning. The corrected debtor name now shows up properly in the state of washington ucc search results. Thanks everyone for pushing me to fix this rather than hoping it wouldn't matter. Peace of mind is worth the filing fee.

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.

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.