UCC attachment perfection timing question - security interest valid?

Wait, but what about that gap period? Couldn't another creditor have jumped in and perfected first between October 28th and November 3rd?

That's exactly why the timing matters for priority, not attachment. Attachment happened when the debtor got the equipment, but priority is determined by perfection timing. Anyone who perfected during that gap could potentially have priority.

We didn't run a search during the gap - honestly didn't think about it at the time. Should I run one now to see what might have been filed in that window?

Definitely worth checking. Even if something was filed, it doesn't automatically mean you lose priority - depends on what type of financing and whether they properly perfected.

This is making me nervous about my own filings. How long is too long between attachment and perfection?

That sounds useful. Did it help identify anything your manual review missed?

Yeah, it flagged that our security agreement used 'ABC Manufacturing LLC' but the UCC-1 had 'ABC Manufacturing, LLC' with a comma. Small difference but could potentially cause problems down the line.

So attachment and perfection are totally separate things? I thought they had to happen together.

No, they're distinct concepts. Attachment creates the security interest, perfection gives you priority over other creditors. You can have attachment without perfection, but you need both for maximum protection.

This is why I always file UCC-1s BEFORE closing - eliminates any gap period worries.

I feel your pain. The rejection notices are usually so vague too.

Right? And then you're stuck wondering if your security interest is even valid while you're fixing their picky requirements.

That's reassuring. I'll definitely run that UCC search to check for any competing filings in that timeframe.

Good plan. Also make sure your collateral description is broad enough to clearly cover that specific equipment.

What's a purchase money security interest? Is that different from regular equipment financing?

PMSI is when the creditor finances the debtor's acquisition of specific collateral. It can get special priority treatment if perfected within 20 days of the debtor taking possession.

20 days? I thought it was 30 days for equipment.

Someone else mentioned that tool earlier. Might be worth trying to make sure everything aligns properly.

It's pretty straightforward - saved me from a potential disaster when it caught that our collateral description was too narrow compared to what we thought we were securing.

It was purchased equipment - they bought it from a dealer with our financing. Does that change anything?

Actually that might give you PMSI rights if you were the one financing the purchase. Did your loan proceeds go directly to pay the equipment dealer?

Yes, we paid the dealer directly. So that would be a purchase money security interest?

That's a huge relief! I didn't realize the PMSI timing rules would apply here.

Yeah, PMSI gives you priority over earlier-filed general liens on the same collateral. Pretty powerful protection when done right.

This thread has been super educational. I need to review all my equipment financing to see what qualifies as PMSI.

Thanks everyone for the input. I feel much better about our position now. Going to run that UCC search and maybe try the Certana verification tool just to be thorough.

Smart approach. Better to double-check everything than discover problems later during a workout or bankruptcy.