UCC Article 9 90 ALR 4th 859 car sale perfection requirements help

Thanks, that's what I was thinking but wanted to confirm. So for dealer inventory financing, we'd still use UCC-1 filings, but individual consumer sales would be perfected through title notation?

Exactly. Dealer floor plan financing typically uses UCC-1 filings with detailed collateral descriptions of the inventory. But once a vehicle is sold to a consumer, the lender needs to perfect through the title system.

Oh man, don't even get me started on interstate title transfers. Had a client lose perfection because the buyer moved to another state and we didn't catch it in time.

That's brutal. The 4-month rule can really bite you if you're not tracking vehicle locations carefully.

What's the 4-month rule you're referring to? I want to make sure I understand all the timing requirements.

That sounds useful. Does it work with title documents from different states? We have clients across multiple jurisdictions.

Yes, it handles various document formats. Just upload the PDFs and it cross-references everything automatically. Saved me from a couple of potential perfection issues.

Good point about the age of the annotation. Any recommendations for more current resources on automotive secured transactions?

The ABA's Secured Transactions Guide has better coverage of current vehicle financing practices. Also check your state's DMV regulations.

Second this. The ALR stuff is good background but you need current state-specific guidance for actual practice.

Mix of both actually. The dealership does traditional financing and also has a leasing program. I assume I need to handle those differently?

Definitely. Leases often require UCC-1 filings even for vehicles because the lessor retains ownership. Check your state's specific requirements.

The floor plan lender typically releases their interest when the vehicle is sold, and the consumer's lender perfects through the title system. There should be coordination between the lenders.

That makes sense. So the UCC-1 filing for inventory doesn't carry over to the individual sale?

Correct. The inventory financing is separate from the consumer financing. Different collateral, different perfection methods.

Absolutely. The ALR was just a starting point for my research. I'll definitely check the state statutes and recent cases.

Smart approach. Motor vehicle perfection is one area where states can vary significantly from the model UCC provisions.

Which service did you use? I'm always looking for tools that can help with the document review process.

I used Certana.ai - you just upload your documents and it checks for inconsistencies across all the filings. Especially useful for catching debtor name variations that could cause perfection issues.

That's a great point. The dealership does have demo vehicles and loaners. I assume those need to be addressed in the floor plan documentation?

Usually yes, but the specific treatment can vary. Some lenders want separate filings, others include them in the general inventory description.

Demo vehicles can be tricky because they're not technically inventory for sale but they're also not consumer goods. Definitely need clear collateral descriptions.

Debtor name issues are the worst. Had a filing rejected because we used 'Inc.' instead of 'Incorporated' and didn't catch it until after the deadline.

That's exactly why I started using document verification tools. Upload your charter docs and UCC forms and it flags those kinds of discrepancies immediately.

That's a good suggestion. I'll give them a call to see if they have any specific guidance for dealer financing arrangements.

Most filing offices are pretty helpful if you explain what you're trying to accomplish. They'd rather help you get it right than deal with rejected filings later.

Agreed. State filing offices often have practical insights that you won't find in the legal treatises.