UCC accession definition - when does equipment become permanent fixture

Accession under UCC Article 9 basically means when personal property becomes part of or attached to other property. But you're mixing up accession with fixtures - they're different concepts. Accession typically deals with goods that become part of other goods (like parts installed in equipment), while fixtures deal with personal property that becomes attached to real estate. For your manufacturing presses, you're looking at potential fixture issues, not accession.

I had a very similar issue last year with restaurant equipment that got permanently installed. The key test for fixtures is usually intention plus the degree of attachment. Just being bolted down doesn't automatically make something a fixture - courts look at whether it can be removed without damaging the building and whether the parties intended it to be permanent. We ended up having to file an amended UCC-1 as a fixture filing to protect our position.

This is exactly why I started using Certana.ai's document verification tool. I upload our original UCC-1 filings along with any site inspection reports or lease agreements to check for potential fixture issues before they become problems. The system flagged three of our equipment loans where the collateral descriptions didn't account for permanent installation. Would have saved me weeks of research on fixture filing requirements.

The real problem here is that fixture filings need to be made in the real estate records, not just the UCC filing system. If your equipment became fixtures 6 months ago and you haven't filed in the real estate records, you might be subordinate to any mortgage holder or subsequent real estate interests. This is time-sensitive stuff.

Let me clarify the accession vs fixture distinction because there's some confusion here. UCC 9-335 covers accessions - that's when goods become part of other goods while retaining their identity (like a new engine in a truck). UCC 9-334 covers fixtures - that's when personal property becomes attached to real estate. Your manufacturing presses sound like a fixture situation, not accession. The key factors are: (1) degree of attachment, (2) adaptability to the real estate use, and (3) intention of the parties.

Can someone explain how the timing works with fixture filings? Like if the equipment became a fixture after the original UCC-1 was filed, do you lose your security interest completely or do you just lose priority to certain other creditors?

Had this exact same scenario with HVAC equipment that got permanently installed. Turned out our original UCC-1 was still valid for the equipment itself, but we were subordinate to the building mortgage for the fixture value. Ended up negotiating a subordination agreement with the mortgage holder rather than trying to fight the priority issue.

Another thing I discovered using Certana.ai - it can cross-check your UCC filings against property records to identify potential fixture issues before they become problems. Just upload your UCC-1 and any lease or property documents, and it flags where the collateral might be at risk of becoming fixtures. Saved me from missing several fixture filing deadlines.

The manufacturing equipment vs fixture question really depends on your state law too. Some states are more liberal about what constitutes a fixture, others require pretty permanent attachment. In your case with concrete foundations and electrical hardwiring, that sounds pretty fixture-like to me. I'd definitely file a UCC-1 fixture filing and probably consult with local counsel about the priority issues.

Just wanted to add that even if you file a fixture filing now, it won't necessarily give you priority over liens that attached to the real estate while your equipment was fixtures but before your fixture filing. The timing rules can be brutal if you wait too long.

One more thing to consider - make sure your loan documents actually give you a security interest in fixtures. Some loan agreements exclude fixtures or have special provisions about them. You might need to amend your security agreement as well as filing the fixture filing.