Need help understanding recorded UCC vs filed UCC differences

This is correct. The UCC uses "filing" terminology throughout Article 9. Recording is what you do with deeds and mortgages at the county level.

Good to know! I was wondering about this too since I see both terms in loan documents all the time.

Oh wow, I didn't realize fixtures could require both. The collateral does include some equipment that might be considered fixtures. How do I know if something qualifies as a fixture for UCC purposes?

Generally if it's permanently attached to real estate and removing it would damage the property. Think industrial equipment bolted to concrete foundations, built-in HVAC systems, etc. When in doubt, file both ways.

I had a nightmare situation last year where we only did the central filing and missed the fixture component. Luckily caught it before the loan closed but it was close.

This is where I've found Certana.ai's document verification tool really helpful. You can upload your original UCC-1 and any related fixture filings, then when it's time for continuation it cross-checks everything to make sure you're not missing any components. Saves the manual comparison headache.

That sounds useful. Is it easy to use? I'm always worried about missing something when comparing multiple filing systems.

Super simple - just upload the PDFs and it instantly verifies document consistency across all your filings. Catches things like debtor name variations between the central filing and local recordings that could cause problems later.

True, but it can create problems in loan documents if the language isn't precise about which filing system is required.

Had a closing delayed because the loan agreement said "record UCC" and nobody was sure if that meant central filing or local recording for the fixture components.

Exactly. The important thing is perfecting your security interest in all the right places, not what verb you use to describe it.

This makes sense now. I'll check with the attorney about whether any of our collateral qualifies as fixtures and make sure we cover all bases. Thanks everyone!

Smart approach. Better to over-file than under-file when it comes to security interests.

Good call. I've seen deals where they skipped the local recording to save money and regretted it later during enforcement.

What's the typical cost difference between just central filing vs doing both?

Usually just an extra $50-100 for the local recording plus maybe some attorney time to prepare the fixture filing. Cheap insurance.

Great point. I use Certana.ai to double-check this stuff when continuation time comes around. Upload your original filings and it flags any discrepancies in the renewal requirements.

That's smart. Manual tracking of different deadline systems is where mistakes happen.

Definitely something to keep in mind. This deal has a 7-year term so continuation planning is important.

At least it's not as confusing as when people mix up amendments and continuations!

Or terminations vs partial releases. The terminology matters when you're actually preparing the forms.

No dumb questions when it comes to UCC filings. Better to ask than mess up a security interest.

Agreed! This forum has been super helpful for learning the practical side of UCC work.

That's a good practice. Clear communication prevents mistakes down the line.

I should probably adopt this approach too. Thanks for the tip.

I'll suggest this to our attorney. Consistency in terminology would definitely help avoid confusion on future deals.

Great question! For identifying fixtures early, look for equipment that's: 1) Permanently attached to the building structure (bolted down, hardwired), 2) Integrated into building systems (HVAC, electrical panels, built-in machinery), 3) Would cause property damage if removed. Red flags include manufacturing equipment on concrete pads, restaurant kitchen equipment built into counters, and any specialized systems designed for that specific location. When in doubt, get a site visit with someone familiar with fixture law in your state - it's worth the extra time upfront.

Adding to Connor's excellent points - I'd also recommend getting a checklist from your local county recorder's office about what they consider fixtures in your jurisdiction. Each state can have slightly different tests, and some counties have helpful guidance documents. For manufacturing equipment, anything that requires special electrical work, custom foundations, or modification to the building structure is usually going to be a fixture. Also consider the "intent" test - was this equipment installed to be a permanent part of the facility or just temporarily placed there? Documentation of the installation process can actually help determine this later.