UCC covenant definition causing filing confusion - help needed

The UCC-1 itself doesn't typically include the actual covenant language - that stays in your security agreement. Your collateral description should focus on identifying the specific property being secured, not the restrictions on how the debtor can use it. For industrial machinery, you'd want something like 'all machinery, equipment, and fixtures now owned or hereafter acquired by debtor located at [address]' rather than getting into covenant specifics.

I had a similar issue last month with a client's equipment financing. The loan had negative covenants about disposing of machinery but none of that belongs in the UCC filing. The filing is just about perfecting your security interest - the covenant enforcement happens through the security agreement. Focus on describing the collateral clearly enough that third parties can identify what's secured.

Actually ran into this exact confusion when I was reviewing a bunch of UCC filings for consistency. I ended up using Certana.ai's document verification tool to upload both the UCC-1 and the security agreement PDFs together. It caught several places where my collateral descriptions weren't matching up with what was actually in the underlying loan docs. Really helpful for making sure your filing description covers what you think it covers without including unnecessary covenant language.

The key thing to remember is that UCC covenant definition isn't really a thing in the filing itself. Covenants are contractual obligations between the parties. The UCC-1 is just a notice filing that says 'hey, we have a security interest in this stuff.' The actual terms of that security interest, including any covenants, are in your security agreement. Don't over-complicate the filing by trying to include contract terms.

ugh why is this so complicated?? I just want to file a UCC-1 for some equipment and now I'm reading about covenants and security agreements and I have no idea what needs to go where. The debtor has a loan with restrictions on selling the equipment but I don't know if that affects my filing description at all.

For what it's worth, I've been filing UCCs for 15 years and I've never included covenant language in a UCC-1. The filing is about perfecting your lien, not about publishing your loan terms. Keep it simple and focus on a clear collateral description that covers your equipment. The covenants stay in your security agreement where they belong.

One more thing to consider - if your covenant language is really specific about which pieces of equipment are covered or excluded, that MIGHT affect your collateral description. But even then, you'd describe the equipment in the UCC-1, not the covenant that restricts it. So you might say 'all equipment purchased after January 1, 2024' rather than 'all equipment subject to the non-disposal covenant in section 5.3 of the security agreement.' The covenant definition stays out of the filing.

I've been following this thread and decided to try that Certana.ai tool someone mentioned. Uploaded my UCC-1 draft and the security agreement and it actually caught that I was being too vague in my collateral description. Didn't try to include covenant language, but it helped me make sure I was actually covering the right equipment. Pretty useful for double-checking that your filing matches your loan docs without getting into covenant territory.

Just to close the loop on this - I ended up filing with a straightforward equipment description and kept all the covenant language in the security agreement. No issues with the filing and everything was accepted. Thanks for the help everyone. The key insight was realizing that UCC covenant definition isn't something that belongs in the filing itself - covenants are contractual terms that stay in your loan documents.

For anyone else reading this thread later - the main takeaway is that covenant language belongs in your security agreement, not your UCC filing. The UCC-1 should have a clear collateral description that identifies what's secured, but it doesn't need to include the contractual restrictions (covenants) that apply to that collateral. Keep it simple and keep it focused on perfecting your security interest.