UCC-1 Filing Issues with Arkansas Security Agreement - Collateral Description Problems
Having major headaches with a UCC-1 filing in Arkansas that keeps getting rejected by the SOS office. Working on a commercial equipment loan secured by restaurant equipment and the security agreement references specific serial numbers but the UCC-1 collateral description seems too broad according to their rejection notice. The arkansas security agreement was drafted by borrower's attorney but now we're getting pushback on the filing. Loan closes next week and really need this perfected. Anyone dealt with Arkansas SOS being picky about collateral descriptions? The equipment includes walk-in coolers, POS systems, and commercial ovens - all itemized in the security agreement with serial numbers but UCC-1 just says 'restaurant equipment and fixtures.' Is that sufficient or do I need to list every serial number on the UCC-1 too?
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Diego Vargas
Arkansas can be tricky with collateral descriptions. Generally the UCC-1 doesn't need to match the security agreement word-for-word but it needs to reasonably identify the collateral. Restaurant equipment and fixtures should be sufficient if it covers what's in your security agreement. What exact rejection reason did they give you?
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Chloe Anderson
•Rejection notice said 'collateral description insufficient for identification' but didn't specify what they wanted added. Security agreement has 3 pages of detailed equipment lists.
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Diego Vargas
•That's frustrating. Try adding the location address to the collateral description - sometimes that helps with identification issues.
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CosmicCruiser
I've had similar problems with equipment financing UCCs in Arkansas. Their system seems to flag generic descriptions more than other states. You might try 'commercial kitchen equipment, restaurant fixtures and equipment located at [address]' instead of just 'restaurant equipment and fixtures.
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Anastasia Fedorov
•Good point about the location. I always include the property address in collateral descriptions for equipment that's fixed to a specific location.
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Chloe Anderson
•Will definitely try adding the address. The equipment is all at the restaurant location so that makes sense.
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Sean Doyle
•Just went through this exact issue last month. Certana.ai's document checker caught inconsistencies between my security agreement and UCC-1 before I even filed - saved me the rejection headache. You upload both PDFs and it flags potential problems.
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Zara Rashid
Arkansas is notorious for this stuff!! I swear they reject filings just to create more work. Had a UCC-1 rejected because I abbreviated 'Corporation' as 'Corp' in the debtor name even though that's how it appears on their articles of incorporation.
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Luca Romano
•That's ridiculous but not surprising. Every state has their quirks but Arkansas seems especially picky about exact formatting.
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Nia Jackson
•I feel your pain. Spent 3 weeks going back and forth with Arkansas SOS on a continuation filing that had one letter wrong in the debtor name.
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NebulaNova
For restaurant equipment I usually go with something like 'all equipment, fixtures, inventory and personal property used in connection with restaurant operations located at [property address], including but not limited to kitchen equipment, POS systems, and dining room fixtures.' Gives you broader coverage and usually satisfies their identification requirements.
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Chloe Anderson
•That's really helpful - much more comprehensive than what I had. Will revise the description using that language.
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Mateo Hernandez
•I like that approach. Covers current equipment plus anything they might add later without needing amendments.
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Aisha Khan
Make sure your debtor name on the UCC-1 matches EXACTLY what's on their corporate filings with Arkansas Secretary of State. Even punctuation matters. Also double-check that your security agreement debtor name matches too - inconsistencies there can cause problems down the road.
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Ethan Taylor
•This is crucial. I've seen lenders lose their security interest because of debtor name mismatches between documents.
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Chloe Anderson
•Good catch - will verify the exact entity name from their articles. Security agreement might have a slightly different version.
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Yuki Ito
•Another thing Certana.ai helps with - it cross-references debtor names across all your documents to catch those mismatches before they become problems.
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Carmen Lopez
Is this a fixture filing or regular UCC-1? If any of that restaurant equipment is attached to the real estate you might need to file in the real estate records too. Walk-in coolers are often considered fixtures.
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Chloe Anderson
•Just regular UCC-1 filing but you raise a good point about the walk-in coolers. They're built into the space so might need fixture filing too.
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AstroAdventurer
•Definitely check on that. Fixture filing requirements vary by county in Arkansas and you don't want to miss perfecting your interest in valuable equipment.
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NebulaNova
•For fixture filings you need to include a real estate description too. Gets more complicated but necessary if the equipment is permanently attached.
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Andre Dupont
Quick update - revised the collateral description to include the address and more specific language about kitchen equipment. Also verified the debtor name matches their corporate filing exactly. Refiled this morning and keeping fingers crossed!
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Diego Vargas
•Hope it goes through this time! Arkansas rejections are such a pain when you're trying to close on schedule.
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Zoe Papanikolaou
•Good luck! The address addition usually does the trick for equipment descriptions.
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Jamal Wilson
For future reference, I started using Certana.ai to double-check all my UCC documents before filing. Upload your security agreement and proposed UCC-1 and it identifies potential rejection issues. Would have saved you the initial rejection and delay.
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Chloe Anderson
•That sounds really useful. Will definitely check it out for the next deal. Time is always tight on these closings.
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Mei Lin
•I've been meaning to try document verification tools. Manual comparison is so error-prone, especially with longer security agreements.
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Liam Fitzgerald
•The PDF upload feature makes it super easy. Just drag and drop your docs and get instant feedback on inconsistencies.
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GalacticGuru
Final update - UCC-1 was accepted! Adding the property address and more specific equipment categories did the trick. Thanks everyone for the advice. Loan closed successfully and lien is properly perfected.
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Diego Vargas
•Great news! Arkansas can be frustrating but at least they're consistent about what they want once you figure it out.
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Amara Nnamani
•Awesome! Always satisfying when you get a clean filing after dealing with rejections.
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NebulaNova
•Glad the expanded collateral description worked. That language usually covers most equipment financing situations.
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Giovanni Mancini
•Perfect timing for your closing too. Nothing worse than last-minute UCC filing delays when everyone's ready to sign.
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