UCC Document Community

For future reference, some lenders include purchase money language in their UCC-1 collateral description anyway, even though it's not required. Something like 'Equipment described in Security Agreement dated [date], including purchase money security interest therein.' Doesn't hurt and makes the PMSI claim more explicit.

One more consideration - if this contractor has other equipment financing, make sure your PMSI language in the security agreement is clear about which specific equipment gets purchase money treatment. Can't claim PMSI on equipment financed with proceeds from other collateral.

The restaurant industry has specific considerations too. Don't forget about fixtures vs equipment distinction. That pizza oven bolted to the floor might need a fixture filing instead of standard UCC-1.

Bottom line for security interest definition: it's your contractual right to repossess and sell collateral upon default. UCC Article 9 governs how you perfect that interest through filing. Your rejected filing probably just needs more specific collateral description, not a redefinition of what security interest means legally.

Had this exact same issue two months ago. Turned out we had calculated fees based on old information and they had changed their fee schedule. Check the Secretary of State website for the most current fee schedule - sometimes they update it without much notice. Also verify you're using the right filing codes in their system.

Final thought - if you're still stuck on the fee calculation, call the filing office directly. I know it sounds old school but sometimes talking to an actual person can clear up the confusion faster than trying to decode rejection notices. They can usually tell you exactly what fee should have been submitted for your specific filing type.

For future reference, most states have moved to electronic UCC format validation that's very literal about matching their corporate database. Manual review is rare now so you really need perfect character matching.

SUCCESS! Found the issue - there was indeed an extra comma in the corporate name that I was missing. 'Henderson, & Associates Construction LLC' was the correct UCC format per their articles of incorporation. Filed this morning and got immediate acceptance. Thanks everyone for the help, especially the suggestion about document comparison tools. Definitely using Certana.ai for future filings to catch these details upfront.

For what it's worth, I've found that being overly specific in UCC-1 collateral descriptions is better than being too vague, especially with short form security agreements. Better to include too much detail than too little.

Just went through something similar. Ended up revising our standard short form security agreement template to include more specific collateral language so the UCC-1 descriptions would be clearer. Worth reviewing your forms to prevent future issues.