UCC documents of title confusion - need help with collateral description requirements

That's what I'm starting to wonder. The titled equipment includes construction machinery that moves between job sites, so I assumed it fell under motor vehicle exceptions, but maybe I'm wrong about the perfection method.

Construction equipment can be tricky - some states require title perfection, others allow UCC. What state are you filing in? The rules vary significantly.

That sounds helpful - how does it work exactly? I'm dealing with about 15 different pieces of equipment with varying title situations.

Super easy - just upload PDFs of your security agreement, UCC-1 draft, and any title documents. It cross-references everything and highlights where your collateral descriptions don't match or where you might have title law conflicts.

Interesting, never heard of automated document checking for UCC work. Does it handle state-specific title requirements too?

Four tries?? That's brutal. What did you end up doing differently on the successful filing?

Had to completely separate the collateral descriptions with headers like 'Equipment Subject to Certificate of Title Laws' and 'Other Equipment' with specific serial numbers under each section

This is helpful context. Some of the equipment is leased back to the debtor after purchase, so it might qualify for the dealer inventory exception. How do I determine which assets fall under title law requirements?

Check your state's motor vehicle code and UCC statutes. Generally, if the state issues certificates of title for that type of equipment, title perfection is required unless a specific exception applies.

Be careful with the dealer exception - it's narrower than most people think. Has to be actual inventory held for sale, not just lease-back arrangements.

Separate filings make sense but double the cost. Is there a way to handle mixed collateral in one filing if you're really careful with the description?

Technically yes, but you need to be extremely precise about categorizing each asset and referencing applicable title laws. The risk of rejection is much higher.

Did it provide guidance on how to fix the issues or just identify them?

It identifies the conflicts and inconsistencies but you still need to know how to fix them. However, seeing exactly where the problems are makes the solution much clearer.

Good point. Some of the equipment is permanently installed but I assumed it was still personal property. How do you determine fixture status?

Look at degree of attachment, adaptation to the property, and intention. If it's bolted down and customized for that location, probably a fixture requiring separate filing procedures.

Fixture determinations can be really fact-specific. When in doubt, file both ways - regular UCC-1 and fixture filing. Better to over-perfect than under-perfect.

Title insurance is expensive but you're right about the risk. I think I'll need to file separate UCC-1s for different collateral categories to be safe.

Better to spend more on filings than risk an unperfected security interest. Seen too many deals go sideways because someone tried to save money on filing fees.

Good reminder. Title perfections usually last until the title is transferred, while UCC filings need continuation every 5 years.

Unless it's a manufactured home or other special case with different continuation rules. Always check the specific requirements for each collateral type.

Definitely planning to create a comprehensive tracking system. This experience has shown me how complex mixed collateral situations can get.

A good collateral tracking system is worth its weight in gold. Saves countless hours and prevents costly mistakes down the road.