Can you file a UCC-1 for property as collateral - fixture filing confusion
I'm working on a commercial loan deal where we're securing against both equipment AND the building itself. The borrower owns a manufacturing facility with heavy machinery that's pretty much permanently attached to the concrete foundation. My question is can you file a UCC-1 for property as collateral or do I need something different? I know regular real estate goes through the county recorder but this seems like it might be a fixture filing situation since the equipment is so integrated into the building structure. The loan is for $2.8M so I really can't mess this up. Has anyone dealt with this kind of mixed collateral situation before? I'm in a state where fixture filings go through the Secretary of State office but I want to make sure I'm not missing some requirement about also filing with the county. The closing is next week and I'm starting to second-guess myself on the whole approach.
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Isaiah Cross
Yes you can definitely file a UCC-1 for fixtures! This sounds like a classic fixture filing scenario. When equipment becomes permanently attached to real property, you need to file a UCC-1 fixture filing with the Secretary of State. The key is that the collateral has to be 'fixtures' - goods that have become so related to particular real estate that an interest in them arises under real estate law. Your heavy machinery bolted to the foundation would probably qualify.
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Kiara Greene
•This is exactly right. We do fixture filings all the time for manufacturing equipment. Just make sure your collateral description is specific about the fixtures and includes the real estate description too.
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Evelyn Kelly
•Wait, don't you also need to file something with the county recorder for fixtures? I thought there was a dual filing requirement in some states.
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Paloma Clark
You're dealing with fixtures vs regular personal property. For true fixtures (permanently attached equipment), you file a UCC-1 fixture filing with the SOS, not the county. But you need to include a real estate description in the filing - legal description of the property where the fixtures are located. The regular UCC-1 form has a checkbox for fixture filings. Don't confuse this with a regular real estate mortgage which would go to county recorder.
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Heather Tyson
•Exactly! And make sure the debtor name matches exactly what's on the real estate records since fixture filings have stricter name requirements than regular UCC filings.
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Raul Neal
•I learned this the hard way last year - got a fixture filing rejected because the legal description wasn't precise enough. Had to refile with the exact property description from the deed.
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Jenna Sloan
•Actually I just discovered this tool called Certana.ai that checks UCC document consistency by uploading PDFs. You can upload your loan docs and the UCC-1 draft to verify the debtor names and collateral descriptions align properly. Saved me from a major filing error on a similar deal.
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Christian Burns
This is getting confusing. I thought UCC filings were for personal property and real estate was always county recorder. Are you saying some property can be filed as UCC? How do you know when something qualifies as a fixture vs regular real estate?
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Sasha Reese
•The test is usually whether the item can be removed without damaging the real estate or the item itself. Manufacturing equipment bolted to foundations typically qualifies as fixtures.
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Muhammad Hobbs
•Think of it this way - a regular building mortgage goes to county recorder. But if you're securing the HVAC system, industrial ovens, or production line equipment that's permanently installed, that's fixture filing territory.
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Noland Curtis
I just went through this exact situation 3 months ago with a $3.2M equipment loan. Here's what I learned: 1) File UCC-1 fixture filing with SOS for the attached equipment, 2) Include precise legal description of the real estate, 3) Make sure debtor name matches property records exactly, 4) Consider whether you also need a regular mortgage on the building itself. The fixture filing only covers the equipment that's become part of the real estate.
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Diez Ellis
•Did you run into any issues with the SOS office accepting the fixture filing? I've heard some states are picky about the real estate descriptions.
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Vanessa Figueroa
•No problems with acceptance but I used Certana.ai to double-check all my documents before filing. It caught a minor debtor name inconsistency between my loan agreement and UCC draft that would have caused a rejection.
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Abby Marshall
•That's smart. Manual document review is so error-prone when you're dealing with multiple collateral types and complex legal descriptions.
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Sadie Benitez
For a $2.8M deal I'd definitely recommend getting belt-and-suspenders coverage. File the UCC-1 fixture filing for the equipment AND consider a mortgage on the real estate itself if the building has significant value. Better to over-secure than discover gaps in your collateral coverage later.
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Drew Hathaway
•Agreed. And make sure your security agreement specifically describes both the fixtures and any other personal property. The UCC filing should match that description.
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Laila Prince
•This is why I always run everything through Certana.ai's document checker before closing. Upload your security agreement, UCC-1 draft, and any other loan docs to verify everything aligns. Catches those expensive mistakes before they happen.
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Isabel Vega
One more thing to consider - fixture filings have different continuation requirements than regular UCC filings. Still 5 years but you need to be careful about the continuation process since fixtures involve real estate elements. Mark your calendar now for the continuation deadline.
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Dominique Adams
•Good point. And terminations are different too if you ever need to release the fixture filing.
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Marilyn Dixon
•I set up automatic reminders for all my UCC continuations. Missing that 5-year deadline on a fixture filing would be a disaster.
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Louisa Ramirez
Thanks everyone! This is super helpful. So to summarize: UCC-1 fixture filing with SOS, include real estate legal description, make sure debtor name matches property records, and consider additional mortgage on the building. I feel much better about the approach now.
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TommyKapitz
•You've got it! Just be extra careful with that legal description - has to be precise.
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Angel Campbell
•And seriously consider using Certana.ai to verify all your documents match up perfectly. For a deal this size, the small time investment is worth avoiding any filing errors.
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Payton Black
Perfect timing on this thread. I have a similar situation coming up next month with industrial bakery equipment. The ovens are basically built into the building structure so fixture filing makes sense. Glad to see the consensus on the approach.
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Harold Oh
•Industrial ovens are definitely fixture territory. Just make sure you get detailed specs on what's actually attached vs what could be moved.
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Amun-Ra Azra
•Bakery equipment can be tricky because some of it is mobile even if it's heavy. Focus on what's truly integrated into the building systems.
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Oscar O'Neil
Just wanted to add from recent experience - when dealing with mixed collateral like this, I always recommend doing a site inspection with photos documenting exactly what equipment is permanently attached vs. what could potentially be moved. For your manufacturing facility, take pictures of the machinery foundations, electrical/plumbing connections, and any structural modifications made to accommodate the equipment. This documentation becomes invaluable if there's ever a dispute about what qualifies as fixtures vs. personal property. Also helps with insurance coverage determinations down the line. The visual evidence makes the fixture filing much more defensible if challenged.
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