Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
For dual-use equipment like your computers, I'd recommend using functional categories rather than trying to nail down exact usage. Something like "computer and electronic equipment used in debtor's manufacturing and business operations" gives you coverage regardless of how the equipment is deployed. The manufacturing equipment should be straightforward - just describe it as "manufacturing and production equipment" with maybe a few specific high-value items if your lender wants them called out. I've had good luck with this approach and it avoids the headache of trying to classify every piece of equipment based on its current use.
That functional category approach makes a lot of sense. I've been overthinking the specific use cases when what really matters is having broad enough language to cover the equipment regardless of how it's being used day-to-day. Thanks for the practical suggestion!
As someone new to UCC filings, this thread has been incredibly helpful! I'm dealing with a similar situation where we're trying to figure out equipment definitions for our first UCC filing. One question that keeps coming up - when you mention "including but not limited to" language, does that create any risk of the description being too broad? Our attorney mentioned something about needing to be "reasonably specific" but I'm not sure where that line is drawn. Also, for those who've used document checking tools like Certana.ai, do they help with initial filings or just amendments and continuations?
Welcome to the UCC filing world! The "including but not limited to" language is actually pretty standard and generally accepted by filing offices - it gives you specificity for important items while maintaining broad coverage. The key is balancing it with enough concrete examples that it's not just a meaningless catch-all. As for Certana.ai, it works for all types of UCC filings, not just amendments. It's really helpful for initial filings too since it can catch formatting issues and ensure your collateral descriptions are consistent throughout the document. Much better to find problems before you submit than after you get a rejection notice!
Join the conversation
Update on this - we ended up separating our filing into three parts: UCC-1 for mobile drilling equipment, fixture filings for permanently attached pumping units and tanks, and separate mortgage recordings for the mineral lease interests. All accepted on the second try. The key was being way more specific in each collateral description and not trying to cover everything in one filing.
About 6 weeks total because we had wells in 3 different counties. Each county had slightly different fixture filing requirements.
6 weeks? No wonder oil and gas deals take forever to close. The perfection process alone is like a part-time job.
This is a great example of why oil and gas secured transactions require such specialized knowledge. The complexity comes from the fact that you're essentially dealing with three different types of collateral that each have their own perfection requirements under different legal frameworks. For anyone else facing similar issues, I'd recommend working with a local attorney who specializes in oil and gas law - the state-specific variations in filing requirements can be brutal, and the costs of getting it wrong (like delayed closings or unperfected security interests) far outweigh the legal fees. Also, don't underestimate the ongoing compliance burden once everything is filed - those mobile drilling rigs create perpetual headaches for maintaining perfection across state lines.
This is really helpful perspective! As someone new to oil and gas financing, I'm wondering - are there any red flags to watch for when evaluating whether a lender actually understands these complexities? It seems like a lot of institutions might take on these deals without realizing how intricate the perfection requirements are. Also, do you have any recommendations for staying current on state law changes? It sounds like these rules evolve frequently.
Join the conversation
The terminology threw me off at first too. UCC stands for Uniform Commercial Code, which is the law that governs these filings. Each state has its own filing system but they're all based on the same underlying rules.
Ah, that makes sense. So it's uniform across states but each state handles their own filings?
Right! The rules are mostly the same but each state has its own forms and procedures. That's why you need to know the quirks of each state you're filing in.
Wow, this thread has been incredibly educational! As someone just starting to learn about UCC filings, I had no idea how complex this system really is. The part about debtor names needing to be EXACTLY right is particularly eye-opening - I would have assumed "close enough" was fine. And the fact that these filings expire after 5 years seems like such an important detail that could easily be overlooked. I'm definitely going to create a tracking system for continuation dates from day one. One question though - if you're dealing with a borrower that operates in multiple states, do you need to file UCCs in each state where they have collateral, or just their home state?
Great question about multi-state filings! Generally, you file where the debtor is located (their chief executive office), not where the collateral is physically located. But there are exceptions - like for fixture filings, timber, or certain agricultural liens. For a corporation, you'd typically file in their state of incorporation. The tricky part is when they move or reorganize - you might need to file in both the old and new jurisdictions during the transition period. It's definitely worth consulting with legal counsel on complex multi-state deals to make sure you don't miss anything!
Join the conversation
This has been such a helpful thread. I'm bookmarking it for future reference. The terminology confusion is real and I'm glad I'm not the only one who was struggling with this. UCC-1 financing statement = lien filing. Financial statements = accounting documents. Got it!
Same here. This confusion cost me hours of research time that I could have avoided.
At least now we all know for next time. Proper terminology matters in this stuff.
This thread saved me so much confusion! I was literally about to call my lender and ask for a "UCC financial statement" template. Now I understand it's just sloppy terminology that gets thrown around. The UCC-1 financing statement is the actual legal document that gets filed to create the security interest, and it has absolutely nothing to do with my business's P&L or balance sheet. Thanks everyone for being so clear about this distinction - it's going to save me from looking foolish on my next loan application!
Yara Assad
I'm dealing with a similar issue right now and this thread has been incredibly helpful! Just to confirm my understanding - if I have an LLC borrower with an individual guarantor, I need two separate UCC1 forms, one for each debtor, even though it's the same loan and same collateral. And I need to be absolutely certain about the exact legal names from the source documents. One question though - do both UCC1 forms need to describe the collateral identically, or can the descriptions vary slightly as long as they cover the same equipment?
0 coins
Abigail Spencer
•Yes, you've got it right - separate forms for each debtor with exact legal names from source documents. For the collateral descriptions, they should be identical on both UCC1 forms since you're securing the same debt with the same equipment. Using different descriptions could create confusion later and might suggest different collateral is involved. Keep the descriptions consistent across both filings to avoid any potential issues with searches or priority disputes.
0 coins
Zainab Abdulrahman
This is such a common source of confusion! I've been handling UCC filings for about 8 years now and can confirm what others have said - you absolutely need separate UCC1 forms for the LLC and the individual guarantor. They're distinct legal entities even though they're related to the same transaction. One tip I'd add is to make sure your loan documentation clearly states that both parties are debtors under the security agreement, not just that one is a guarantor. If the individual is only guaranteeing payment and not granting a security interest in the collateral, you might not need a UCC filing for them at all. Review your security agreement language carefully to confirm both parties are actually granting security interests in the same collateral.
0 coins