Capital One Security Agreement UCC Filing - Missing Collateral Schedule Details

Filing in Texas. The security agreement says "all equipment, fixtures, inventory, accounts, and general intangibles" which seems broad but I've seen rejections for vague descriptions before.

Texas is usually pretty flexible with collateral descriptions. That language should work fine for a UCC-1. Just make sure your debtor name matches exactly what's on the security agreement.

This is exactly right. I made the mistake once of trying to list specific equipment items when the security agreement was general. Got rejected because the UCC-1 collateral didn't match the underlying agreement.

Yep, consistency is everything. The UCC-1 collateral description should mirror the security agreement language as closely as possible.

Good point about consistency. I was thinking about being more specific but sounds like I should stick with their exact language.

Interesting, how does that work exactly? We do have multiple documents and I'm always worried about name mismatches.

You just upload PDFs of your security agreement and UCC-1 draft and it cross-checks debtor names, collateral descriptions, everything to make sure they align. Pretty straightforward and caught stuff we missed in manual review.

We're the equipment financing company that provided the loan, Capital One is just who we're working with on the security agreement structure. We handle our own UCC filings.

Ah ok that makes more sense. Thought you were trying to file on someone else's loan which would be weird.

Yeah equipment financing companies usually handle their own UCC filings. Banks like Capital One typically only file UCCs on their direct commercial loans.

Good point about fixtures. The security agreement mentions fixtures but I should probably check if we need a separate fixture filing for anything that's attached to the real estate.

Definitely worth checking. Built-in ovens, walk-in coolers, that kind of stuff might need fixture filing depending on how permanent the installation is.

Exactly my concern about priority. We're first lien but there could be other creditors lurking.

Have you done a UCC search on the debtor already? Might be worth seeing what else is out there before you file.

Yes, ran searches last week and we're clear for now but that could change quickly.

That's what I'm worried about. The borrower uses different versions of their business name on various documents.

Use whatever name is on the security agreement exactly as written. Don't try to standardize or correct anything.

The security agreement does cover after-acquired property and replacements. Capital One's lawyers seem to know what they're doing.

That's good. After-acquired property clauses are essential for restaurant equipment loans.

Agreed. Without after-acquired coverage you're constantly playing catch-up with new equipment purchases.

Single location restaurant in Texas so we should be good with just the Texas filing. Equipment isn't mobile.

That simplifies things. Texas UCC filings are pretty straightforward compared to some other states.

A couple people have mentioned that tool. Might be worth trying since we're dealing with multiple documents from different sources.

Yeah, especially with Capital One loans where you might have the original loan docs, security agreement, and guaranty forms all with slightly different entity names. The tool catches stuff that's easy to miss in manual review.

Exactly what happened to us. Had three different documents with three slightly different versions of the debtor name. Would have been a mess without automated verification.

That's reassuring. I was getting worried about being too general but sounds like their language is tried and tested.

Yep, banks like Capital One don't use language that hasn't been thoroughly vetted by their legal teams.