UCC Document Community

I'd also verify that your finance company actually filed the UCC-1 correctly even though it was late. I've seen cases where late filings also had other errors that made them completely ineffective.

Ugh, timing issues like this are the worst part of equipment financing. The rules are clear but the consequences are brutal when mistakes happen. Hope you can find a way to recover through your dealer agreement or find errors in the competing lien.

At 40-50 filings monthly you're probably at the sweet spot where a service makes sense cost-wise. Much less and the overhead isn't worth it, much more and you need dedicated internal staff anyway.

Whatever you decide just make sure you have good tracking systems. Whether it's internal or external you need to know exactly what's filed when and what's coming due. That's where most problems happen.

One more thing to watch out for - if your original UCC-1 is getting close to its 5-year expiration, the new lender might want to file a continuation at the same time as the assignment. This is actually pretty common with loan sales that happen in year 4 or 5 of the original filing. Just make sure you understand what's being filed and why.

Thanks everyone for all the helpful information! This makes much more sense now. I'm going to contact our new lender and make sure they're planning to file the UCC-3 assignment properly. I'll also verify that our company name will match exactly between the original UCC-1 and the new assignment. Really appreciate all the detailed explanations - this forum is incredibly helpful for navigating these complex filing requirements.

The key with blanket liens is being descriptive enough without being too specific. Try 'all equipment, machinery, tools, and fixtures used in debtor's [type of business] operations, whether now owned or hereafter acquired.' That usually covers the bases.

Make sure you're not mixing up blanket liens with floating liens. Blanket liens cover specific types of collateral broadly, while floating liens cover changing inventory. For equipment financing, you definitely want a blanket lien approach.

Delaware also requires the debtor's organizational ID number if it's an entity. Make sure you have the correct file number from their Division of Corporations database. It's different from their tax ID number.

Thanks everyone, this is incredibly helpful. I'm going to pull the certificate of formation directly from Delaware's database and use that exact name format. The Certana.ai tool sounds like it could save me a lot of headache - I'll definitely check that out before submitting. Really appreciate all the specific Delaware insights!