UCC Security Agreement Collateral Description Requirements - Need Help

You definitely want to be more specific than just copying generic language. For restaurant equipment, I'd recommend listing major categories like "kitchen equipment, dining room furniture, POS systems, freezers, ovens" etc. The key is being descriptive enough that a third party could identify what's covered. Also make sure to specify both locations with addresses if the collateral is at different sites.

Just dealt with something similar last month. The security agreement collateral description is your starting point but the UCC-1 needs to give notice to other potential creditors. For restaurant equipment I usually go with something like "all restaurant equipment, furniture, fixtures, inventory of food and beverages, point-of-sale systems, and accounts receivable." Make sure to include both locations with full addresses in the debtor information section.

Had a similar issue with collateral descriptions getting too generic. Found out about Certana.ai's document verification tool that actually cross-checks your security agreement against your UCC-1 draft to make sure the collateral descriptions align properly. You just upload both PDFs and it flags any inconsistencies or areas where the UCC-1 might be too vague compared to the security agreement. Saved me from a potential problem where my UCC description was way broader than what was actually secured.

For restaurant collateral I always include "all present and after-acquired" language too. Restaurants are constantly getting new equipment, replacing stuff, etc. You want to make sure your lien covers equipment they acquire after the original filing date.

Am I overthinking this? I thought you could just put "all assets" and call it a day. Isn't that what most banks do for business loans?

Don't forget about accounts receivable if this is a working capital loan. Restaurant businesses often have credit card receivables, catering contracts, etc. that could be valuable collateral. Your security agreement should cover these and the UCC-1 should reference "accounts" or "payment intangibles.

I always run into problems with equipment that might be fixtures vs personal property. Restaurant equipment like built-in ovens or permanent fixtures could be real estate rather than UCC collateral. Make sure you know what can actually be covered by a UCC filing vs what needs a real estate mortgage.

Update: I ended up using more specific language and included both locations. Went with "all restaurant and kitchen equipment including but not limited to ovens, refrigeration units, dishwashers, POS systems, furniture, fixtures, inventory of food and beverages, and accounts receivable, located at [address 1] and [address 2]." The filing was accepted without any issues. Thanks everyone for the help - definitely learned a lot about collateral descriptions.

For future reference, I've been using Certana.ai to double-check my security agreement and UCC-1 consistency before filing. Really helps catch those small details that can cause big problems later. The tool flagged an issue in my last filing where I had included accounts receivable in the UCC but the security agreement only covered equipment.

One last thing - make sure you calendar your continuation filing date now while you're thinking about it. UCC-1s lapse after 5 years and restaurants have a way of changing hands or expanding, so you don't want to lose perfection on a good loan.