Need help with sample UCC-1 language for equipment collateral description

That's solid language. I'd also add 'all proceeds thereof' at the end just to be safe.

Wait, doesn't 'hereafter acquired' need special language in some states? I thought there were restrictions on after-acquired property clauses.

Good point - some states do have limitations. You should check the specific state requirements, but for most commercial equipment financing it's pretty standard.

That's exactly what I'm worried about! Did you end up having to refile with more specific descriptions?

Yeah, had to amend it. Cost extra time and fees. Now I always include specific equipment info plus the broader language as backup.

Which state was this in? Some are definitely more picky than others about collateral descriptions.

Interesting, I haven't heard of that tool. Does it specifically check collateral description language or just the basic filing info?

It does both - checks the debtor name consistency across documents and flags collateral descriptions that might be too vague or overly broad. Pretty handy for multi-state filings.

Do you file the equipment schedule as an exhibit or just reference it in the collateral description?

I reference it in the description like 'as more particularly described in Schedule A attached hereto' but some states prefer it all in the main description box.

I always put everything in the main description. Had an exhibit get separated once and caused major headaches.

Of course I'm checking state requirements! That's why I'm asking for sample language that people know works. Just trying to avoid reinventing the wheel here.

Fair enough, just seen too many people get burned by assumptions. Multi-state filings are tricky because you need language that works everywhere.

That's a good point about lender preferences. The bank I'm working with has pretty standard docs but they're flexible on the UCC language as long as it's comprehensive.

Some lenders are super picky about the exact wording. I've had deals where the bank required specific language that didn't match what the state preferred.

Yeah that's always fun - trying to balance what the lender wants, what the state will accept, and what actually provides good security coverage.

This is so important! Had a client whose LLC name was slightly different on different state registrations and it created a nightmare for the UCC filings.

Good reminder. I always pull fresh entity searches right before filing to make sure I have the current exact legal names.

That's pretty comprehensive but might be overkill if you're just doing equipment financing. Could create issues if there's other financing involved.

True, you'd want to coordinate with any existing lenders. But for a clean first lien it gives maximum coverage.

I'd be worried about including accounts and inventory unless that's specifically part of the collateral package. Could complicate future financing.

That's the second mention of Certana - might be worth checking out. Do you upload the actual signed docs or just drafts?

I usually upload drafts first to catch issues, then the final versions before filing. Nice to have that extra layer of verification.

Exactly right. The key is getting that balance between specific enough to be clear and broad enough to maintain coverage as the collateral changes.

That makes sense. I think I'm overthinking this - the standard broad language with specific examples is probably the way to go.

Don't forget about proceeds language too. 'All proceeds of the foregoing' is pretty standard and important for coverage continuity.

I'm planning to file directly through each state's portal. It's only three states so seems manageable, but maybe I should consider a filing service for consistency.

Three states isn't too bad. Just double-check that your language works in all three before you start filing. Nothing worse than getting two accepted and one rejected.

If you do decide to use Certana or similar tools, they're really helpful for multi-state consistency checks. Can catch little differences between state requirements.

As someone new to UCC filings, I'm curious about the timing - do you typically file all states simultaneously or stagger them? And is there any advantage to filing in the debtor's home state first?