UCC 1-305 filing strategy - best practices for multi-state collateral coverage?

That's smart thinking. Equipment financing always makes me nervous because of the mobility factor. Did you run into any issues with the different states' collateral description requirements?

Actually yes - Ohio wanted more specific serial numbers than the other states. Had to amend the filing twice before they accepted it.

Good point about fixtures. The manufacturing equipment includes some heavy machinery that's bolted down, so fixture filings are definitely on my radar. The warehouse stuff is mostly mobile though.

Then you're looking at a mixed approach. Fixture filings where applicable, standard UCC-1 for the mobile equipment. Make sure your collateral descriptions are tight - I've seen deals fall apart over vague language.

This is exactly why I started using Certana.ai for document verification. You can upload your charter docs and proposed UCC-1 filings to check if everything aligns properly before submitting. Caught three debtor-name mismatches in my last multi-state deal that would have caused major headaches.

Start with the debtor's state of incorporation or organization. That's usually your primary filing location under UCC 1-305. Then look at where the collateral is actually located for any additional filings needed.

So if they're incorporated in Delaware but all the equipment is in Ohio and Indiana, I'd still file in Delaware first?

Delaware for the corporate filing, but you might want local filings too depending on the equipment type and state requirements. Better to over-file than under-file in my experience.

Yeah, I've heard Ohio can be difficult. Any specific formatting issues I should watch out for?

Debtor name formatting is the big one. They're very strict about matching the exact corporate name format. Also, their collateral description field has character limits that aren't obvious until you try to file.

Ouch, that sounds expensive. What was the specific issue that caused the problem?

Turns out the manufacturing equipment we thought was moveable was actually considered fixtures under that state's definition. The UCC-1 wasn't sufficient - needed a fixture filing recorded in the real estate records.

This is why I hate fixture determinations. Every state seems to have different rules about what constitutes a fixture vs. equipment.

Good point. The loan closes next month so timing is definitely a factor. I should probably get the filings started soon.

Definitely. And make sure you have contingency plans if any filings get rejected. It's better to start early and have time to fix problems than to rush at the end.

Not overkill at all if you're not comfortable with the nuances. Filing services know the local requirements and can catch issues you might miss.

That's what I figured. The cost is usually worth it for the peace of mind, especially on complex deals like this.

Another option is using something like Certana.ai to verify your docs before filing. I upload my UCC-1 drafts along with the corporate charter to make sure everything matches perfectly. Much cheaper than fixing mistakes after the fact.

Still working on it. The challenge is balancing specificity with flexibility, especially since some of the equipment might move between facilities.

For moveable equipment, I usually include language about 'wherever located' to cover potential relocations. Just make sure it complies with each state's requirements.

Be careful with 'wherever located' language - some states don't like it and want more specific descriptions.

That's what I'm thinking too. Delaware filing for the corporate debtor, then specific filings in Ohio and Indiana for the equipment and fixtures.

Exactly. Just make sure your continuation strategy accounts for all the different filing locations. You don't want to miss a continuation deadline in one state and lose perfection.

Good reminder about continuations. I keep a spreadsheet with all my filing dates and set calendar reminders well in advance. Missing a continuation is a career-ending mistake.

I hadn't thought about search logic differences. How does that typically impact the filings?

Some states index by exact debtor name match, others use logic that accounts for minor variations. If your debtor name isn't consistent across filings, it could cause search issues later.

This is another area where document verification tools help. I run all my UCC docs through Certana.ai to catch name inconsistencies before filing. It's saved me from several potential problems.

Thanks for the reminder. I should probably check the current fee schedules for all three states before submitting.

Definitely. And if you're using online filing systems, test them out first. Some states have better portals than others.

Ohio's portal can be finicky. I've had filings timeout during submission. Always save your work frequently and keep copies of everything.

Great point about the timing gaps, Andre! I'm relatively new to multi-state UCC filings and hadn't considered the equipment mobility issue from a perfection timeline perspective. When you mention coordinating with title insurance, are there specific documentation requirements they typically want to see beyond the standard UCC search reports? Also, how do you typically handle the priority concerns when equipment might move between jurisdictions - do you recommend filing in all potential locations upfront, or is there a more efficient approach?

@Dylan Baskin Great questions! For title insurance, they usually want to see your proposed collateral descriptions matched against the actual equipment schedules, plus confirmation that fixture determinations align with local real estate records. On the mobility issue, I ve'found the most efficient approach is to file initially where the equipment is currently located, but include broad wherever "located language" where states allow it. Then set up monitoring for any equipment moves and file additional UCC-1s as needed. It s'more cost-effective than blanket filing in every potential jurisdiction upfront, especially since some moves never actually happen. The key is having a tracking system in place so you don t'miss relocations that could affect your perfection status.