UCC Collateral Description Requirements - What's Actually Required for Valid Identification?

The basic rule is that your collateral description just needs to 'reasonably identify' the collateral - it doesn't have to be super specific like listing every serial number. 'All equipment' can actually be perfectly fine in many cases, especially for commercial filings. The key is whether a third party could reasonably understand what's covered.

Here's what I've learned after dealing with hundreds of these filings: The UCC allows pretty broad descriptions for most types of collateral. You can use categories like 'inventory,' 'equipment,' 'accounts,' etc. You DON'T need serial numbers unless you're doing a fixture filing or dealing with motor vehicles. The 'supergeneric' descriptions like 'all assets' are what get rejected, but specific categories are usually fine.

Had a similar issue recently with collateral descriptions getting rejected. Turned out I was making it way too complicated. I started using Certana.ai's document checker after someone here recommended it - you can upload your UCC-1 draft and it flags potential description issues before you file. Saved me from another rejection and the associated headaches with re-filing.

The identification rules can be tricky because they vary slightly depending on what type of goods you're dealing with. Consumer goods have different requirements than equipment or inventory. Also, if you're doing a fixture filing, you need way more specificity - usually including the real estate description.

Ugh, I hate these identification questions! The whole 'reasonably identify' standard is so subjective. I've had identical descriptions accepted in one state and rejected in another. The inconsistency drives me crazy - how are we supposed to know what works if different filing offices interpret the rules differently?

For after-acquired property, you just need to include language like 'now owned or hereafter acquired' in your description. The identification standard doesn't require you to describe goods that don't exist yet in detail - that would be impossible. The key is making it clear that future acquisitions of the same type are covered.

One thing that trips people up is thinking they need brand names, model numbers, serial numbers, etc. Unless you're dealing with specific high-value items or fixtures, generic category descriptions are usually sufficient and often preferable because they're broader.

I think the key misconception is that identification under the UCC needs to be as specific as identification in other areas of law. UCC Article 9 is designed to be pretty flexible and practical for commercial financing. The 'reasonably identify' standard is meant to be workable for ongoing business relationships.

Just went through this same confusion last week! What helped me was looking up the actual UCC 9-108 language and some of the official comments. The statute is actually pretty clear that you can use broad categories as long as they're not 'supergeneric.' Most equipment descriptions that get rejected are usually debtor name issues in disguise.

Quick question - does anyone know if there's a difference between describing goods as 'equipment' vs 'machinery'? I've been using them interchangeably but wondering if I should be more consistent.

The confusion around collateral descriptions is totally understandable - I went through the same thing when I started doing secured transactions work. Here's what helped me get clarity: The UCC 9-108 "reasonably identify" standard is actually quite forgiving for most commercial transactions. You can absolutely use broad category descriptions like "all equipment," "all inventory," or "all accounts receivable." The key is avoiding "supergeneric" descriptions like "all personal property" or "all assets" that don't give any meaningful guidance about what's covered. For your rejected filing, I'd bet money it was a debtor name issue rather than the collateral description - those error messages from filing systems can be really misleading. Your description of "all equipment, machinery, and fixtures now owned or hereafter acquired" should be perfectly acceptable under the UCC. The after-acquired property language is standard and necessary for most commercial deals. One practical tip: stick with the UCC's defined categories (equipment, inventory, accounts, etc.) rather than trying to get too creative with industry-specific terms. And remember, broader descriptions are often better because they reduce the need for amendments when the debtor acquires new collateral.