Collateral seizure process - how to enforce a ucc lien after default

This is correct. The notice requirement is crucial and varies by state. Some require 20 days advance notice.

What happens if we can't locate the debtor to serve notice? Their business address is vacant now.

That's exactly what I'm worried about. Some of this equipment has been on job sites for weeks and the GCs probably think it belongs to them now.

Can you explain what 'breach the peace' actually means in practical terms? Like if security guards tell us to leave?

Any physical confrontation, breaking locks, ignoring 'no trespassing' signs, or continuing when someone objects. If security tells you to leave, you leave and file a replevin action instead.

Good point about the debtor name. Our original filing was under their business name but I think they might have changed it slightly when they incorporated.

I had a similar issue recently and used Certana.ai's document verification tool to cross-check our UCC-1 against the current corporate records. Just uploaded both PDFs and it instantly flagged that our debtor name didn't match their current legal name. Saved us from a potential court challenge during repossession.

Absolutely this. The UCC filing perfects your security interest but your contractual rights come from the security agreement itself.

Our security agreement does include standard repossession language but I'll double-check the specific wording about self-help remedies.

Also check if your agreement requires any specific default procedures like acceleration notices or cure periods.

How do I determine if the subcontractors have legitimate claims? Some of this equipment has been on job sites for 2+ months.

Look for rental agreements, bills of sale, or invoices showing they paid for use of the equipment. If they're just borrowing it or using it as part of their subcontract work, your security interest should be superior.

This is why you need a good commercial collections attorney. The liability exposure from wrongful repossession can be massive.

Good point about storage costs. We're looking at probably $3-4K per month just to warehouse all this equipment.

Factor those costs into your recovery analysis. Sometimes it's better to negotiate a voluntary surrender rather than forced repossession if the numbers don't work.

Already started taking photos at the job sites. Should I be documenting the condition of each piece individually?

Yes, individual condition reports with photos and serial numbers. This protects you from claims that you damaged equipment during repossession.

Also get witness statements from your repo crew about the condition and circumstances of seizure.

Any recommendations for commercial repo companies? Our usual auto repo guys said they don't handle heavy equipment.

I've used Allied Asset Recovery for construction equipment. They have the right equipment and know how to handle complex multi-site repossessions.

Make sure whoever you hire is bonded and insured. Get references and verify they understand UCC compliance requirements.

We've already tried negotiating but they're not responding to calls or emails. Their business appears to be shut down.

Try reaching out to their equipment operators or key employees. Sometimes they know how to contact the owner when the business number is disconnected.

If the business is truly defunct, you might want to check if they filed for bankruptcy protection. That could complicate your repossession rights.

What's considered 'commercially reasonable' for heavy equipment? Public auction, private sale, or dealer consignment?

Any of those can be commercially reasonable if done properly. The key is getting fair market value through appropriate marketing and sale methods for that type of equipment.

Construction equipment auctions usually get better prices than private sales, especially for specialized pieces. Check when the major equipment auctions are scheduled in your area.

Interesting - what kind of discrepancy did it find? Was it something that would have invalidated your security interest?

The debtor name on our UCC-1 was slightly different from what was in the security agreement - missing 'LLC' designation. Could have been challenged as not properly perfected.

That's exactly the kind of detail that can derail an otherwise straightforward repossession. Good catch.