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Asher Levin
Bottom line on UCC loan meaning - it's just a fancy way of saying 'secured business loan'. The UCC filing gives your lender legal rights to the collateral and creates a public record of their claim. As long as you make your payments and don't try to sell the equipment without permission, it shouldn't affect your day-to-day operations much.
Asher Levin
•Exactly. And when you pay off the loan, make sure they file a UCC-3 termination statement to clear the lien from public records.
Serene Snow
•Great point about the termination. I've seen borrowers who paid off loans years ago but still have active UCC filings because the lender never terminated them.
Just want to add that UCC loans often have better interest rates than unsecured financing because the lender has collateral to fall back on. So while the filing requirements seem like a hassle, you're probably saving money compared to an unsecured business loan.
That's a good point. My rate is pretty competitive so I guess the extra paperwork is worth it.
Definitely. Just make sure you understand your obligations regarding the collateral and you should be fine.
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Pro tip: if you're doing regular Texas UCC work consider setting up your own account with the Texas SOS system. The learning curve is minimal and you'll save hundreds over time compared to using third party services for basic searches.
Exactly. Plus you have direct control over timing instead of waiting for a service provider to get around to your request.
Agreed. Once you get familiar with the Texas SOS portal it's actually pretty user friendly.
Mason Kaczka
Just to close the loop here - ended up going directly through Texas SOS and paid $18 total for the UCC statement request. Got results back same day. That $90 quote was definitely a ripoff. Thanks everyone for the advice!
Alicia Stern
•Great outcome. Hope your UCC-1 filing goes smoothly now that you have the search results.
Drake
•Nice work! And definitely consider that document verification tool for when you file the UCC-1 to make sure everything aligns perfectly.
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For what it's worth, I always recommend keeping a copy of the filed UCC-1 with the filing stamp in your loan file. That way you can always reference exactly what was filed and when. Makes these kinds of searches much easier to interpret.
We keep both electronic and hard copies of all our UCC filings. Paranoid? Maybe. But it's saved us more than once.
Not paranoid at all - that's just good record keeping. The Nebraska system is pretty reliable but having your own copies is always smart.
Ethan Moore
Update us when you figure out what's going on! I'm curious to know if it turns out to be a system display issue or if there really are multiple filings. These kinds of posts are really helpful for the rest of us.
Will do! I'm planning to pull all the documents tomorrow and get to the bottom of this. Thanks everyone for all the helpful suggestions.
Yes, please update! I'm dealing with something similar in Iowa and wondering if it's a regional system thing.
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The whole UCC system needs to be modernized. These punctuation and spacing issues are ridiculous when you're dealing with millions in secured debt. At least some states are getting better about it.
Agreed. Delaware's system is so much more user-friendly than SC's.
True, but we have to work with what we've got. The rules are the rules, even if the system is antiquated.
Just make sure you're not overthinking this. If the certified copy shows 'ABC Manufacturing LLC' without the comma, file your continuation exactly that way. Don't second-guess yourself at this point.
Ava Harris
•Good luck! Let us know how it goes.
Olivia Kay
•Will do. Thanks everyone for the advice. This community is a lifesaver when you're dealing with these portal nightmares.
Kaitlyn Jenkins
Whatever you do, don't let this drag on too long. I've heard of cases where delays in UCC termination filings created problems for borrowers trying to sell equipment or get new financing. The fees suck but getting that lien released is more important.
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Kaitlyn Jenkins
•Exactly. And if you're planning to sell the equipment or refinance, having a clean title is worth more than fighting over a few hundred in fees.
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Bruno Simmons
•Plus some buyers will walk away if there are UCC complications, even if you promise to resolve them at closing. Clean title is always easier.
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Aileen Rodriguez
For future reference, next time negotiate UCC fees upfront and consider getting a cap written into the loan agreement. Something like "UCC release fees not to exceed $200" gives you protection against excessive charges.
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Aileen Rodriguez
•Yeah, these fees have gotten out of hand in recent years. Lenders know borrowers don't have many options when it comes time for release.
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Zane Gray
•This is why I started using Certana.ai early in the loan process - uploading the loan agreement and proposed UCC-1 to make sure everything aligns before signing. Catches issues before they become expensive problems.
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