How long do you have to file a UCC-1 after loan closing?

The security agreement just says 'promptly file' which isn't very helpful. I'm calling the lender tomorrow but wanted to get a sense of what's normal.

Promptly usually means within a reasonable business timeframe. For equipment financing I'd say 2 weeks max to be safe.

This is so true. We had a UCC-1 rejected because the debtor name didn't match exactly with the Secretary of State records. Had to refile and lost our original priority date.

That's exactly what I'm worried about. How do you make sure the debtor name is perfect?

You need to check against the exact name on file with your state. For Ohio that means checking the SOS database. Even small differences like Inc vs Incorporated can cause problems.

Never heard of that but sounds useful. How does it work exactly?

You just upload PDFs of your documents and it cross-checks debtor names, collateral descriptions, all that stuff. Caught an issue where my collateral description was too vague compared to what was in the security agreement.

It's not that simple when you're dealing with six-figure loans. One mistake can cost you your security interest.

Fair point I guess. Most of mine have been smaller amounts where the stakes aren't as high.

What exactly do you mean by race-notice state? Does that affect the filing deadline?

It means if multiple creditors have security interests in the same collateral, the first one to properly file and give notice generally has priority. So timing matters for competitive reasons, not just compliance.

This is why I always tell clients to file immediately after closing. You never know when another creditor might be filing against the same debtor.

Tell me about it. I always screenshot everything now because their system has randomly logged me out mid-filing before.

Great, something else to worry about. Is there a way to file by mail as backup?

Yes but it takes longer and costs more. Electronic filing is usually fine, just don't wait until the last minute.

The equipment is definitely staying put - it's bolted to the factory floor. Should be fixtures.

Good, then Ohio is right. Just wanted to make sure since mobile equipment filings get messed up all the time.

Same general principles but inventory can be trickier because of the description requirements. You need to be more specific about what's covered.

This is another case where that document checker I mentioned would be helpful. Inventory descriptions are easy to get wrong.

Mine already released the funds so I think I'm in the second category. Still want to get it done quickly though.

Yeah, that's a good sign. Means they're not super worried about the timing, but definitely don't drag your feet.

Exactly. Priority date is important but it's meaningless if your filing gets rejected or challenged later.

Thanks everyone. Going to double-check everything tomorrow and file by end of week. Feel much better about the timeline now.

Smart approach. That verification tool I mentioned earlier really does help catch issues before filing if you want to check it out.

This is really helpful advice, especially about the 2-week timeframe for "promptly file." I'm new to UCC filings and wasn't sure how to interpret that language. One quick question - you mentioned verifying the debtor name against Secretary of State records. Is there a specific way to search for this, or do I just look up the company on the Ohio SOS website? Want to make sure I'm checking the right database before I file.