UCC Document Community

Had a similar document consistency issue recently and ended up using that Certana.ai verification tool someone mentioned. Uploaded our equipment lease and UCC-1 and it immediately flagged that we had a fixture filing situation. Saved us from a potential priority dispute when the building got refinanced. Pretty straightforward to use - just upload the PDFs and it analyzes the collateral descriptions against the installation details.

Thanks for all the detailed responses everyone. Based on what I'm reading here, it sounds like we definitely need to go the fixture filing route given that our refrigeration units are hardwired into the electrical system. @Emma Davis, when you mention filing in the real estate records in Ohio, do we need to file in every county where we have equipment, or just where the debtor's headquarters is located? We have units installed across three different counties in Ohio and I want to make sure we get the filing locations right this time.

Thanks everyone for all the helpful advice! This is exactly what I needed. I'm going to reach out to our local Puerto Rico counsel just to double-check the filing requirements, and I'll definitely use one of those document verification tools to make sure the debtor name formatting is perfect. Really appreciate the heads up about the processing times and fees - I'll adjust our closing timeline accordingly. This community is incredibly helpful for navigating these jurisdiction-specific issues!

This is such a valuable thread - I'm bookmarking it for future reference! I'm relatively new to handling secured transactions outside of the mainland US, and Puerto Rico has been on my list of jurisdictions I need to learn more about. The detail about accent marks and name formatting is particularly helpful since I can see how easy it would be to overlook something like that and have a filing rejected. The document verification tools mentioned here sound like they could save a lot of time and prevent costly mistakes. Does anyone know if Puerto Rico has any unique requirements for amendments or terminations compared to other states? I want to make sure I understand the full lifecycle of UCC filings there before I take on my first PR transaction.

Bottom line - your UCC filing creates a public record of your security interest. Banks, other lenders, and anyone else can search for it if they need to. The fact that the bank wasn't specifically notified doesn't invalidate your lien or affect your priority position.

This is a common misconception! Banks are NOT automatically notified when UCC-1 filings are made, even if their institution is mentioned in the collateral description. The UCC filing system is purely a public recordation system - think of it like a filing cabinet that anyone can search, but it doesn't send out alerts. Your security interest is perfectly valid and enforceable regardless of whether the bank received notice. The debtor is either genuinely confused about how the system works or trying to create doubt about your lien position. Any new lender doing proper due diligence will discover your UCC filing during their search process, so don't worry about that refinance attempt. Your filing date establishes your priority, not who got notified about it.

Don't panic but move fast. You still have rights even after default. They have to give you proper notice of any sale, the sale has to be commercially reasonable, and you can still redeem the collateral by paying the full debt. Document everything and consider getting legal help if the equipment is worth fighting for.

Given the substantial equity in your equipment ($180k value vs $95k debt), you're in a much stronger position than many debtors facing Part 6 enforcement. The lender has significant incentive to maximize sale proceeds since they'll likely recover their full debt regardless. Focus on three immediate actions: 1) Verify their UCC-1 filing is perfect - any defects could invalidate enforcement entirely, 2) Document that you received proper written notice under 9-611 (phone calls aren't sufficient), and 3) Get an independent appraisal now to establish fair market value. With $85k in equity at stake, even small procedural violations by the lender could save you tens of thousands. The "commercially reasonable" standard under 9-610 is your biggest protection - they can't just do a quick private sale to recover their $95k and ignore your equity interest.

This is a stressful situation but you have several paths forward. First, pull your business credit reports from all three bureaus - sometimes the UCC filing will show additional details about the original creditor there. Second, search your state's business entity database for the secured party LLC to see if it's a DBA for a company you might recognize. Third, contact your bank from 2019 directly - they should have records of any UCC filings they authorized even if the loan was transferred or paid off. Finally, consider reaching out to a UCC search company - they often have access to historical data and cross-references that can help identify the source. Document every step you take because if this turns out to be fraudulent or erroneous, you'll need a clear paper trail for legal action.

One thing that might help while you're waiting for your attorney - contact your current lender's underwriter directly and explain you're actively investigating this UCC filing. Many lenders will work with you if they see you're being proactive about resolving it. You might be able to get conditional approval pending resolution, or they might accept an indemnification agreement while you sort this out. Also, check if the filing has lapsed - UCC-1 filings are only effective for 5 years unless a continuation statement was filed. Since this is from 2019, it should have expired in 2024 unless they filed a UCC-3 continuation. If it's showing as active but past its expiration date, that's another angle to challenge it on.