BDA UCC Filing - Need Help with Business Development Authority Collateral Description
I'm working on a UCC-1 filing for equipment financing through our state's Business Development Authority (BDA) and I'm second-guessing my collateral description. The BDA requires very specific language for their loan programs but I want to make sure I'm not being too narrow or too broad. The equipment includes manufacturing machinery, computer systems, and some office furniture - all purchased with BDA funds. Should I list each category separately or can I use a broader description like 'all equipment financed by BDA loan agreement dated [date]'? I've seen some BDA UCC filing examples that seem inconsistent and I really don't want this rejected. The loan closes next week and I'm getting nervous about the timing.
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Connor Murphy
BDA filings can be tricky because they often have their own preferred collateral language. I'd recommend being more specific rather than too broad - list the main categories like 'manufacturing equipment, computer hardware and software, office furniture and fixtures.' That way you're covered but not so vague that it could be challenged later.
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Yara Haddad
•Agree on being specific. I learned this the hard way when a BDA filing got questioned during an audit because the description was too generic.
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Keisha Robinson
•Just make sure whatever you put matches exactly what's in your loan docs - BDA is pretty strict about consistency
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Paolo Conti
What state BDA are you dealing with? Some have model language they prefer and others are more flexible. If you have a contact there I'd just call and ask - they usually want these filings to go smoothly too since it protects their loan.
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QuantumQuest
•Good point - I should have mentioned it's for a manufacturing expansion loan. I'll try calling their loan officer tomorrow to see if they have standard language they recommend.
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Amina Sow
•Most BDA programs I've worked with have boilerplate collateral descriptions in their loan docs. Check your loan agreement - it might spell out exactly what to put in the UCC-1.
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GalaxyGazer
I had a similar situation last month and ended up using Certana.ai's document checker to make sure my UCC-1 matched the loan agreement perfectly. You can upload both documents and it flags any inconsistencies in the collateral descriptions or debtor names. Saved me from what could have been a costly mismatch - BDA loans usually have strict cross-default provisions.
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QuantumQuest
•That sounds really helpful - how accurate is it with catching those kinds of discrepancies?
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GalaxyGazer
•It caught three small inconsistencies I missed, including a slight difference in how the company name was formatted between documents. Definitely worth the peace of mind for BDA filings.
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Oliver Wagner
•I've used Certana too - it's particularly good at catching those subtle differences in entity names that can cause real problems with institutional lenders like BDAs
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Natasha Kuznetsova
BE SPECIFIC! I cannot stress this enough with BDA filings. They often get audited and you don't want some examiner questioning whether your collateral description actually covers what was financed. List it out: manufacturing equipment, computer systems, office furniture. Add serial numbers if you have them for the big ticket items.
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QuantumQuest
•Serial numbers - good call. The manufacturing equipment definitely has those. Should I attach a schedule or just reference that serial numbers are available?
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Natasha Kuznetsova
•For BDA filings I usually just reference 'including but not limited to equipment more particularly described in attached Schedule A' if there are a lot of items. Keeps the main filing clean but gives you the detail backup.
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Javier Mendoza
Why are BDA filings always such a pain??? The regular commercial lenders don't care about this level of detail but government programs want everything spelled out to the penny. Just copy whatever language is in your loan agreement word for word - that's what I do now.
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Emma Thompson
•It's because they're using public funds so there's more oversight. Pain in the butt but I get why they're stricter.
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Javier Mendoza
•Still annoying when you're trying to close on time and they want every i dotted and t crossed
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Malik Davis
•Better safe than sorry with BDA loans though - they can accelerate the whole note if there are filing problems
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Isabella Santos
I'd be very careful about using 'all equipment' language with BDA filings. They typically want to see specific categories that tie back to the use of funds in your loan application. Manufacturing machinery, computer equipment, office furniture - that covers your bases without being overly broad.
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QuantumQuest
•That makes sense - the loan application did break it down by category for the use of funds section
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StarStrider
•Exactly - consistency between loan app, loan docs, and UCC filing is key with BDA programs
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Ravi Gupta
Quick question - are you filing this yourself or having the BDA do it? Some BDA programs handle the UCC filings internally and have their standard forms already set up.
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QuantumQuest
•We're handling it - they require the borrower to file and provide proof of filing before loan closing. Adds another layer of stress!
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Ravi Gupta
•Ah got it. In that case definitely double-check your debtor name matches exactly what's on your articles of incorporation. BDA lenders are sticklers for exact name matches.
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Freya Pedersen
•Good point about the exact name match - I've seen BDA loans held up for weeks over name discrepancies
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Omar Hassan
I just went through this exact same thing with a BDA equipment loan. Ended up using three separate collateral categories: 1) Manufacturing and production equipment, 2) Computer hardware and software, 3) Office furniture and fixtures. Got approved no problem and the loan officer said the description was perfect.
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QuantumQuest
•That's really helpful - sounds like a good template to follow. Did you include any 'including but not limited to' language?
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Omar Hassan
•Yes, I put that after each category just to give a little breathing room in case we missed something small
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Chloe Anderson
Make sure you also check what state you need to file in - if the BDA loan covers equipment in multiple locations you might need to file in each state where the collateral is located. Don't assume the BDA's home state is sufficient.
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QuantumQuest
•All equipment is staying at our main facility so single state filing should be fine, but good reminder to double-check
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Diego Vargas
•Worth confirming with the BDA too - some have specific requirements about where to file even for single-location collateral
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CosmicCruiser
One more thing - double check that your financing statement doesn't expire before your BDA loan term ends. Some BDA loans are longer than the standard 5-year UCC filing period so you'll need to file a continuation before it lapses.
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QuantumQuest
•Good catch - the loan is for 7 years so I'll need to calendar a continuation filing for year 4
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Oliver Wagner
•Most BDA loan agreements actually require the borrower to maintain valid UCC filings for the full loan term - it's usually buried in the covenants section
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GalaxyGazer
Final thought - after you get everything drafted, run it through Certana.ai one more time to verify everything matches your loan docs. BDA filings are too important to wing it, and having that automated verification gives you backup documentation that you did your due diligence if questions come up later.
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QuantumQuest
•Thanks everyone - feeling much more confident about this filing now. Going to follow the three-category approach and use the document checker before submitting.
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Connor Murphy
•Smart move - BDA filings are worth getting right the first time. Good luck with your loan closing!
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