UCC Article 9 motor vehicle perfection - title certificate vs UCC-1 filing?

Thanks - that's what I was thinking but the loan docs keep referencing UCC Article 9 filings. Should I still file UCC-1s as backup protection?

I wouldn't rely on UCC-1s for titled vehicles. The title certificate method is what Article 9 requires for most motor vehicles. Double-check if any of those trucks might be exempt from titling requirements.

They're commercial delivery trucks, all under 26,000 lbs. Standard titled vehicles as far as I know.

Then definitely go the title route. Article 9 is clear that titled goods need title perfection, not UCC filing.

Just make sure you get the lien notation on all 12 titles. Missing even one could leave you unperfected on that vehicle.

Interesting - does it specifically check motor vehicle perfection requirements under Article 9?

It cross-references your security agreement against UCC Article 9 requirements and flags potential perfection method issues. Really useful for complex collateral like mixed vehicle/equipment deals.

Because different types of collateral need different perfection methods. Article 9 actually makes sense once you understand the logic behind it.

Easy for you to say! I've been doing this for 10 years and still get confused by all the exceptions.

The key is understanding that Article 9 follows the collateral, not the filing type. Motor vehicles follow title law because that's where people expect to find liens.

Good point - how do I check if they're all subject to title requirements under Article 9?

Contact your state DMV or check your state's version of UCC 9-311. It should list which vehicles are covered by certificate of title laws.

Also check if any are trailers - those sometimes have different perfection rules even under Article 9.

Both? That seems excessive. Which state was this?

Can't remember exactly but it was some weird dual-filing requirement. Better safe than sorry with Article 9 compliance.

That's unusual. Most states follow the general Article 9 rule - if it's a titled good, perfect through the title. Dual filing is rare.

But what about the UCC-1 filing requirement in the loan docs?

Loan docs often include boilerplate language. Follow Article 9 law, not just the loan agreement. Title perfection is what matters for motor vehicles.

That sounds really helpful for ensuring Article 9 compliance. Did it specifically address motor vehicle perfection methods?

Yes, it flagged that I needed title perfection rather than UCC filing for certain vehicles. Saved me from a major perfection mistake.

Wish I'd known about that tool earlier. Would have saved me hours of research on Article 9 requirements.

Good reminder - should the security agreement reference UCC Article 9 specifically?

It should comply with Article 9 requirements but doesn't need to specifically cite it. Focus on proper collateral description and perfection method.

These are mobile delivery trucks, not fixtures. Standard motor vehicle perfection should apply.

Right, fixtures would be for permanently attached equipment. Mobile vehicles are definitely title perfection territory under Article 9.

Exactly. Fixture filings are for equipment that becomes part of real property, not mobile vehicles.

Smart move. Getting motor vehicle perfection wrong under Article 9 can be costly.

Glad it worked out! The tool really is helpful for complex Article 9 situations.

Thanks everyone for the guidance. Going to proceed with title perfection for all vehicles per Article 9 requirements.

Excellent points about timing and leased vehicles! I've seen deals where lenders missed the perfection deadline and lost priority. For the lease issue - how do you typically handle situations where some vehicles in a fleet are leased vs owned? Do you need separate security agreements for each type under Article 9?

For mixed fleets with owned and leased vehicles, you typically need different approaches under Article 9. For owned vehicles, standard title perfection works. For leased vehicles, you need to either get the lessor to subordinate their interest or perfect against the lessee's rights in the lease (which might require UCC-1 filing since lease rights aren't always covered by certificate of title). I usually require separate schedules in the security agreement identifying which vehicles are owned vs leased to avoid confusion. Also worth noting that some leases prohibit additional liens, so you need to review the lease terms carefully before proceeding.

Great question about multi-state registration! Under Article 9, you generally perfect in the state where the debtor is located (their chief executive office), not where each vehicle is registered. However, for certificate of title perfection, you typically need to perfect where the certificate of title is issued, which is usually where the vehicle is primarily garaged or the owner's principal place of business. For long-haul trucks that cross state lines regularly, this can get tricky - I'd recommend checking UCC 9-303 and your specific state's variations. Some lenders require perfection in multiple states as belt-and-suspenders protection, especially for high-value fleets. You might also want to consider whether any vehicles could change their location of titling during the loan term.