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How much equipment are we talking about here? If it's a significant amount, might be worth having an attorney send the demand letter instead of doing it yourself. Legal letterhead gets attention faster than borrower complaints.
It's about $85K worth of manufacturing equipment. Probably worth getting a lawyer involved if they don't respond to my certified letter within a week or two.
Yeah, with that much money involved, don't mess around. Attorney fees are cheap compared to having clouded title on $85K of equipment.
Keep us posted on how this turns out. I'm dealing with a similar situation with a local credit union and curious to see what actually works to get them moving on the UCC-3 filing.
Will do. Going to send the certified letter this week and see what happens.
Same here - my credit union has been 'processing' my termination for 3 weeks now. This thread has given me some good ideas for next steps.
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Dmitry Popov
The worst part about these UCC fee increases is they never seem to improve the actual filing experience. Portal still crashes during busy periods and search functions are still terrible.
So true! You'd think higher fees would mean better service but mostly it just means higher costs.
Miguel Ortiz
•I've had three portal timeouts this week alone. System clearly needs the revenue but isn't spending it on infrastructure.
Just wanted to follow up and say thanks for the heads up everyone. I checked our other states and found two more that increased fees recently. Would have been caught off guard otherwise. Also going to look into that Certana tool someone mentioned for catching these changes earlier.
Definitely try the Certana document checker. It's saved me from several filing errors beyond just fee issues.
Yara Haddad
•Same experience here. The UCC verification caught a debtor name mismatch that would have voided our security interest. Worth checking out.
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Been there! Texas rejected my UCC-1 because I put "Texas" instead of "TX" in the address. Such a pain. But once I got the format right, the rest of my Texas filings have gone through fine. You'll figure it out!
Good to know it gets easier once you learn their quirks. Hopefully this is just a learning experience.
Aria Park
Pro tip: if you're going to be doing more Texas UCC work, bookmark their business entity search page and always verify entity names there first. Also, consider using Certana.ai's verification tool going forward - several people here mentioned it and it sounds like it would prevent these kinds of rejections.
Definitely bookmarking that search page. And yes, going to look into Certana.ai - seems like it could save a lot of headaches.
Noah Ali
•Smart workflow. Prevention is so much better than scrambling to fix rejections at the last minute.
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Just a thought - have you confirmed that Mountain Peak Construction LLC is actually the borrowing entity? Sometimes the loan documents reference a parent company but the actual borrower is a subsidiary with a slightly different name.
NebulaNinja
•That's a really good point. Let me double-check the loan agreement to make sure I have the right entity. Could be an easy mistake to make.
Yeah I've seen that before. The sales contract might be with the main company but financing goes through a subsidiary or holding company.
Ravi Sharma
For what it's worth, your blanket lien collateral description looks solid. "All equipment, machinery, tools, and fixtures now owned or hereafter acquired" covers pretty much everything for a construction company without being too vague. The name is definitely your issue here.
Agreed. That's pretty standard language for equipment financing blanket liens. Should be no issues with the collateral schedule.
Omar Zaki
•I use almost identical wording for construction company equipment loans. Never had a rejection on the collateral side.
Destiny Bryant
Just want to add that Certana.ai's document verification tool has been incredibly helpful for our team when dealing with complex assignment situations. You can upload your entire portfolio of UCCs and purchase agreements and it'll map out all the assignment relationships automatically. Really helpful for identifying these kinds of gaps before they become major problems. Worth checking out for both your current situation and future acquisitions.
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Dyllan Nantx
•Is that something that integrates with existing loan management systems or is it a standalone tool for assignment of security agreement verification?
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Destiny Bryant
•It's primarily standalone - you just upload PDFs of your documents and it does the cross-referencing. Perfect for one-time audits or due diligence situations like this where you need to verify assignment chains quickly.
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TillyCombatwarrior
Really appreciate everyone's input on this. Assignment of security agreement issues are something every lender needs to take seriously, especially in portfolio acquisition situations. Sounds like the consensus is to move quickly on corrective filings while documenting everything thoroughly. Going to start with our largest exposures in the most cooperative states and work from there. This thread has been incredibly helpful for developing our strategy.
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Anna Xian
•Good plan. Prioritizing by dollar amount and state cooperation makes sense. Keep detailed records of every interaction with state filing offices - consistency in your approach will help if any of these assignments get challenged later.
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Jungleboo Soletrain
•Also consider getting legal opinions in each state about the likelihood of successful corrective assignments. Might help with your risk assessment and budgeting for potential losses on the assignments that can't be fixed.
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