UCC Document Community

thanks everyone this thread has been super helpful. gonna double check all my calculations now lol

As someone new to Tennessee UCC filings, this thread has been incredibly educational! I've been hesitant to jump into TN filings because the recording tax calculations seemed so confusing, but now I understand it's actually pretty straightforward with the $0.37 per $100 rule. The Excel formula Mohammed shared is going to save me so much time, and I'm definitely going to check out Certana.ai before I submit my first batch. One quick question - do you all typically add a small buffer to your recording tax payments to account for any potential miscalculations, or is it better to be exact?

To directly answer your question - a security agreement is required in nearly all security interest transactions. It's one of the three requirements for attachment under UCC Article 9. Without it, you don't have an enforceable security interest no matter what you file.

Just to add another perspective - while everyone's correctly emphasizing the security agreement requirement, don't overlook the practical timing issues with multiple LLCs. You'll likely need separate security agreements for each entity that owns collateral, and make sure your UCC-1 filings match exactly. I've seen deals get complicated when equipment is owned by one LLC but guaranteed by another. Also consider whether you need personal guarantees from the individual owners - that's separate documentation but often critical for equipment financing deals of this size.

Thanks everyone for all the helpful advice! I feel much more confident about getting this UCC-1 filed correctly now. Going to double-check our entity name against state records and keep the collateral description broad but comprehensive. Really appreciate the heads up about fixture filings too - would have missed that completely.

Great thread with lots of practical advice! One additional tip I learned the hard way - if you're filing in multiple states (like if you have business locations in different states), make sure you understand each state's specific requirements. Some states have different collateral description standards or debtor name formatting rules. Also, keep copies of everything including the filing receipts and any correspondence with the filing office. The SBA may ask for proof of filing completion, and having everything organized makes that process much smoother. The stress is worth it once you get that final loan funding!

One more consideration - CT Corp handles continuation filings and UCC-3 amendments too. If you're planning to keep the relationship long-term for the full lifecycle, that might factor into the cost analysis.

Thanks everyone for the detailed feedback! This discussion has been incredibly helpful. Based on what I'm hearing, it sounds like the consensus is that CT Corp's $180/filing premium is hard to justify for routine UCC-1s, especially at our volume. The automated verification approach with tools like Certana.ai seems like the sweet spot - we get the accuracy benefits that would prevent our debtor name rejection issues without the ongoing service fees. I think we'll pilot this approach on our next batch of filings and see how it compares to our current error rate. The cost savings alone would pay for better internal processes within a quarter.

been there with equipment financing headaches. at least you're being proactive about checking. most people don't even know these exist until they cause problems

Also worth noting that if you're planning to get another loan, many lenders will do their own UCC search as part of due diligence anyway. So even if you find an active filing, it doesn't automatically disqualify you - they'll just want to understand the terms and make sure there's no conflict with what they're financing. Some lenders are okay with subordinate liens depending on the collateral involved.