UCC filing rejected - special security agreement requirements not met?

It's manufacturing equipment - CNC machines, industrial printers, that kind of stuff. Nothing I'd consider 'special' but maybe there's something I'm missing about the equipment classifications?

CNC machines can definitely trigger special requirements! If they're considered fixtures or if there's any real estate component to the collateral, you might need fixture filing language or real estate descriptions.

Did you have to redo the entire security agreement or just amend the UCC filing?

Just had to file a new UCC-1 with updated collateral description that referenced the specific agreement clauses. But it delayed everything by two weeks while we figured it out.

Two weeks?! That's exactly what I'm trying to avoid. Did you end up having to extend your loan closing deadline?

Never heard of that but sounds like exactly what I need right now. Is it complicated to use?

Super simple - just upload your PDFs and it runs the cross-check automatically. Shows you exactly where the documents don't align so you know what to fix instead of guessing.

I've used similar tools before and they're definitely worth it for catching these document consistency issues that the human eye misses.

Cross-collateralization is definitely one of those things that trips people up! The security agreement language has to flow through to the filing or they'll reject it.

We do have cross-collateral provisions... that might be it. How specific do you have to be in the UCC collateral description about cross-collateral arrangements?

In my experience you need to at least reference that the collateral secures obligations under multiple agreements or something similar. The exact wording varies by state though.

We definitely have after-acquired property language and future advances. The debtor name should be exact but I'll double-check the punctuation.

After-acquired property clauses almost always need to be reflected in the UCC collateral description. Something like 'all equipment now owned or hereafter acquired' isn't always sufficient if your security agreement has more specific language about future acquisitions.

Warranty provisions affecting UCC filings? That seems excessive even for state bureaucracy...

Right? But apparently if the warranty obligations affect the lender's rights to the collateral, some states want it noted in the public filing. Makes no sense to me but that's what they required.

Yeah, lesson learned. Do you know if most attorneys catch these issues or is this something that falls through the cracks regularly?

Honestly it depends on the attorney's UCC experience. Commercial lawyers who do a lot of secured transactions usually catch it, but general practice attorneys sometimes miss these nuances.

That's why I always use document checking tools now - even experienced attorneys can miss subtle inconsistencies when they're reviewing multiple deals at once.

Good point, I should have tried that first. Sometimes talking to a human helps more than trying to decode their form letters.

Half the time the clerks don't really know either, but occasionally you get someone who can point you in the right direction.

Will do - hopefully I can get this sorted out before it derails the whole closing. Thanks everyone for the suggestions.

Good luck! UCC rejections right before closing are the worst kind of stress.

That's the second mention of that tool - sounds like it might be worth trying before I spend more hours staring at documents.

Definitely worth it, especially when you're under time pressure like this. The peace of mind alone is valuable.