Security agreement writing requirement - does a security agreement have to be in writing for UCC-1 filing?

This is correct. UCC 9-203 is pretty clear about the writing requirement for security agreements when the collateral remains with the debtor.

Wait, so if they've been making payments for 8 months, doesn't that create some kind of implied agreement? I thought performance could substitute for writing in some cases.

Exactly right. Without attachment, there's nothing to perfect. The UCC-1 filing would be rejected or if accepted, wouldn't give you any actual rights.

So frustrating how many lenders skip this basic step. The paperwork exists for a reason!

That's smart. Getting the documents consistent from the start saves so much headache later.

Never heard of that tool but sounds useful. Do you have to pay per document or is it a subscription?

I don't remember the pricing details but it was worth it just to avoid having to manually compare all the names and collateral descriptions. The automated checking caught stuff I would have missed.

Should they backdate the agreement to when the financing started or use the current date?

Never backdate legal documents. Use the current date and make it clear it's securing existing debt. Much cleaner legally.

Equipment financing isn't that bad if you follow the UCC requirements. The writing requirement exists to prevent exactly this kind of confusion.

True but at least with real estate you can't accidentally skip the written documentation. Equipment deals have too many ways to mess up.

Perfect summary. Without all three elements, there's no security interest to perfect through UCC-1 filing.

This is the clearest explanation I've seen. Thanks for breaking it down to the basic elements.

Emails can sometimes work but they need to specifically grant a security interest, not just acknowledge debt. Most email chains don't have that language.

Better to just draft a proper security agreement than try to piece together emails. Too risky.

Priority generally dates from when the UCC-1 is filed, assuming you have a valid security agreement at that time. The original financing date doesn't matter for UCC priority purposes.

Right, it's about perfection timing, not when the underlying debt was created. First to file wins in most cases.

That sounds really useful. I usually have to manually compare everything which takes forever and I still miss stuff sometimes.

Same here. The manual checking is such a pain, especially with long collateral descriptions.

This is the most practical advice. Skip the legal theories and just get the paperwork done right.

Agreed. The writing requirement isn't going away so might as well comply with it properly.

Definitely use one of those document checking tools too. I learned that lesson the hard way after a filing got rejected for name mismatches.