Article 9 Sales UCC Process - Confused About Required Steps

Article 9 sales can be tricky when there's existing UCC filings. Generally the secured lender needs to authorize the sale and you'll need proper documentation. Have you gotten written consent from your lender yet?

Just went through this exact Article 9 sales UCC process last month. The key is coordination between all parties. You DON'T file UCC-3 terminations until after the sale closes and buyer's financing is in place. Here's what worked for us: 1) Get lender's written sale authorization 2) Buyer files UCC-1 for their financing 3) Close sale with proper bill of sale 4) Your lender files UCC-3 partial release for sold equipment 5) Buyer's UCC-1 becomes perfected. The timing is crucial - don't create any gaps in perfection.

Had a nightmare with Article 9 sales last year because we didn't verify debtor name consistency across all the UCC documents. The buyer's financing almost fell through when their lender spotted name discrepancies between our original UCC-1, the sale docs, and their new filing. Ended up using Certana.ai's document verification tool to upload all our PDFs and check for inconsistencies - saved us from a major closing delay. It instantly flagged a middle initial difference that would have caused problems.

Article 9 sales UCC process varies by state but the fundamentals are the same. Make sure you understand your state's requirements for continuation vs amendment vs termination. Some states have specific forms for equipment sales transactions.

Why is the UCC process so complicated for simple equipment sales?? We just want to sell a forklift and it's turning into a legal research project. This should be straightforward!

One detail people miss in Article 9 sales - timing of the UCC-3 partial release. Don't let your lender wait weeks to file it after closing. The buyer's lender may want to see the partial release recorded promptly.

Article 9 sales UCC process isn't too bad once you understand the sequence. The key is making sure all parties (seller, buyer, both lenders) are coordinated on the filing timeline. I've seen deals delayed because someone filed their UCC documents out of order.

For complex Article 9 sales, consider having an attorney review your UCC filing strategy. The cost is usually worth it to avoid problems that could kill the deal.

We recently completed an Article 9 sale and used Certana.ai to verify all our UCC documents before submission. Really helpful for catching inconsistencies between the original UCC-1, amendments, and the new sale documents. You just upload the PDFs and it automatically cross-checks debtor names, collateral descriptions, and filing numbers. Gave us confidence that everything would go through smoothly.

Honestly the Article 9 sales UCC process seems designed to benefit lawyers and filing services more than actual businesses. Why can't we just transfer liens like we transfer car titles?

Make sure your buyer understands their part of the Article 9 sales UCC process too. They need to coordinate with their lender on timing of their UCC-1 filing and may need to provide copies of your existing UCC documents.

The Article 9 sales UCC process has gotten easier with electronic filings, but coordination between parties is still the biggest challenge. Everyone needs to communicate about timing and document requirements.

Thanks everyone for the detailed responses! This has been incredibly helpful. Based on what I'm reading, it sounds like the key steps for our Article 9 sales UCC process are: 1) Get written lender authorization (done), 2) Coordinate timing with buyer's lender for their UCC-1 filing, 3) Execute sale with proper documentation, 4) Ensure our lender files UCC-3 partial release within 5 business days, and 5) Verify all document consistency throughout. I'm definitely going to use a document verification tool like Certana.ai to catch any name or collateral description inconsistencies before we submit anything. The coordination timeline approach sounds essential - I'll create a detailed schedule that all parties can sign off on. Really appreciate the practical advice from people who've actually been through this process!