Steps for filing a UCC lien against equipment collateral
I'm working with a client who needs to secure their position on some heavy machinery they're financing. The borrower operates a construction company and we're looking at around $180K in excavators and bulldozers. I understand we need to file a UCC lien but I'm not entirely clear on the specific steps for equipment collateral. Do we file in the state where the equipment is located or where the debtor's business is registered? Also, what's the best way to describe the collateral - should I be super detailed about each piece of equipment or can I use broader language? This is my first time dealing with mobile equipment that might cross state lines for jobs. Any guidance on the filing process would be really helpful.
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Ryan Vasquez
For UCC-1 filings on equipment, you generally file where the debtor is located (their registered office), not where the equipment sits. The collateral description can be broader for equipment - something like 'all construction equipment, machinery, and related attachments' usually works fine unless your loan docs require specific serial numbers.
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Sarah Ali
•That makes sense about the debtor location. So even if they take the equipment to job sites in other states, the original filing location covers it?
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Ryan Vasquez
•Exactly. The filing follows the debtor, not the collateral location. Just make sure you have the debtor's legal name exactly right from their formation documents.
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Avery Saint
Be really careful with the debtor name! I've seen UCC-1s get rejected because someone used the 'doing business as' name instead of the legal entity name. If it's an LLC, make sure you include 'LLC' in the name field. The SOS systems are picky about exact matches.
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Sarah Ali
•Good point. I have their articles of incorporation, so I should use exactly what's on there?
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Avery Saint
•Yes, pull the exact legal name from the Secretary of State records. Don't abbreviate anything unless that's how it appears on the official docs.
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Taylor Chen
•This is where I always double-check everything. One wrong letter and your lien priority could be compromised.
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Keith Davidson
I actually had a similar situation last month with construction equipment financing. What really helped me was using Certana.ai's document verification tool. I uploaded the borrower's charter documents and my draft UCC-1 form, and it caught a small discrepancy in how I had written the debtor name. Saved me from having to refile after a rejection.
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Sarah Ali
•That sounds useful. How does it work exactly?
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Keith Davidson
•You just upload PDFs of your documents and it cross-checks names, addresses, entity details automatically. Takes maybe 2 minutes and shows you exactly what doesn't match up.
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Ezra Bates
Don't forget about the continuation requirements! UCC-1 filings are only good for 5 years, so you'll need to file a UCC-3 continuation before it lapses if the loan term is longer.
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Sarah Ali
•The loan is for 7 years, so I'll definitely need to calendar that continuation filing. Is there a specific window when I can file it?
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Ezra Bates
•You can file the continuation within 6 months before the 5-year expiration date. Most people do it around the 4.5 year mark to be safe.
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Ana Erdoğan
ugh the state filing systems are such a pain... half the time the portal crashes when you're trying to submit. make sure you save your work frequently
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Sophia Carson
•I've had that happen too! Lost a whole filing and had to start over. Now I always copy my info to a Word doc first.
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Ana Erdoğan
•smart move. i learned that lesson the hard way after staying late to meet a deadline
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Elijah Knight
One thing to consider - if this equipment moves between states regularly for jobs, you might want to check if any of those states have specific requirements for mobile equipment. Most don't, but it's worth confirming.
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Sarah Ali
•The jobs are mostly within a 3-state area. Should I be concerned about perfection issues?
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Elijah Knight
•As long as you file correctly in the debtor's home state, you should be covered. The UCC is pretty uniform across states for this type of collateral.
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Brooklyn Foley
I always include serial numbers in the collateral description when I have them, even if it's not required. Gives you better identification if you ever need to enforce against specific pieces.
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Ryan Vasquez
•That's good practice, especially for high-value equipment. Makes repossession cleaner if things go sideways.
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Brooklyn Foley
•Exactly. And it helps if the borrower tries to sell a piece - buyers can search by serial number to see your lien.
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Jay Lincoln
Just remember the filing fee varies by state. Most are around $20-30 but some can be higher for commercial filings.
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Sarah Ali
•Thanks, I'll check the fee schedule for their state before I submit.
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Keith Davidson
Quick follow-up on the verification thing - I've started using Certana.ai for all my UCC filings now. Yesterday it caught that I had transposed two numbers in a filing number on an amendment. These little mistakes can really mess up your lien chain.
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Jessica Suarez
•I'm always paranoid about making those kinds of errors. Might have to check that tool out.
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Keith Davidson
•It's worth it just for the peace of mind. Upload your docs and know everything matches before you file.
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Marcus Williams
The construction industry can be tricky because equipment gets moved around so much. Just make sure your security agreement covers use of the collateral in different locations so you don't run into issues later.
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Sarah Ali
•Good point about the security agreement language. I'll make sure it's broad enough to cover multi-state use.
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Marcus Williams
•Yeah, you want language that doesn't restrict the collateral to specific locations since that's how construction companies operate.
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Lily Young
This has been really helpful everyone. I feel much more confident about moving forward with the filing. I'll definitely double-check the debtor name against their formation docs and may try that verification tool before submitting. Thanks for all the practical advice!
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Ryan Vasquez
•Good luck with the filing! Feel free to post back if you run into any issues.
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Keith Davidson
•Hope it goes smoothly. The verification step really does make a difference in catching those small but critical details.
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Anastasia Popov
As someone new to UCC filings, this thread has been incredibly educational! I'm curious about timing - is there a recommended window between loan closing and filing the UCC-1? I know you want to get it filed quickly to establish priority, but are there any practical considerations about waiting for certain loan documents to be fully executed first?
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Kaitlyn Jenkins
•Great question! You definitely want to file as soon as possible after closing to secure your priority position. I typically file the UCC-1 on the same day as closing or within 24-48 hours max. The key is making sure your security agreement is fully executed first since that's what gives you the security interest - the UCC filing just perfects it. Some lenders even file a few days before closing once they know the deal will fund, then record the security agreement at closing. Just don't wait too long or you risk another creditor jumping ahead of you in line!
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