UCC 9-607 Collection Rights After Default - When Can I Access Deposit Account

I provided the UCC-1 and loan docs but they said they need something else. They won't tell me specifically what though which is frustrating.

Some banks want an affidavit stating that default has occurred and that you're exercising your rights under 9-607. It's annoying but protects them from liability.

That sounds useful - did it help with your bank collections? I'm wondering if there's some tiny error I'm missing.

Yes, it saved me from a 3-week delay when I found my UCC-1 had a slight variation in the debtor's exact legal name compared to the loan docs. Fixed it before presenting to the bank.

I'll have to check that out. I've had banks reject my documentation over tiny formatting issues before.

The notice stated the amount in default, referenced the loan agreement section about deposit account collection, and gave them 10 days to cure.

That sounds right. The bank probably wants to see that notice too. Some also want proof that the cure period has expired.

Certificate of good standing! That might be what they're looking for. I didn't think about that requirement.

Yeah banks are super paranoid about liability. They want every i dotted and t crossed before they'll freeze or turn over account funds.

Exactly. It's frustrating but once you give them everything they usually process it within a few business days.

Our collateral description says 'all deposit accounts maintained by debtor at any financial institution' - that should cover it right?

That should definitely work. The bank is probably just being overly cautious or doesn't deal with UCC collections very often.

I feel your pain. Had a similar experience where the bank kept asking for 'just one more document' every time I provided what they requested.

YES exactly! It's like they're hoping you'll just give up. So frustrating when you know you have the legal right to collect.

No I didn't send them advance notice. I assumed the UCC filing would be sufficient since it's public record.

That might be part of the issue. Some banks want formal notification of the security interest before they'll acknowledge collection rights.

Good point. The UCC filing creates the perfected interest but banks often want direct notice to protect themselves.

These tiny details are so frustrating but I guess they matter legally. I should probably verify everything is perfectly aligned.

Yeah it's annoying but banks use any small discrepancy as a reason to slow things down. The verification tool caught issues I never would have noticed manually.

Good point - I haven't checked bankruptcy filings recently. That could definitely complicate things.

Worth checking PACER just to be safe. Banks hate getting caught in the middle of bankruptcy issues.

That's a great suggestion. I was dealing with their main customer service line who probably don't handle this stuff regularly.

Yeah the commercial side deals with business accounts and security interests all the time. They should be able to give you a clear checklist.

This is good advice. I always go straight to commercial banking for UCC issues now after wasting time with regular customer service.

Awesome! Glad you got clarity on what they need. Should be smooth sailing from here.

Great news! Always helps when you can talk to someone who actually understands the process.

Perfect! The commercial side makes such a difference. Hope you get your funds quickly now.