UCC filing requirements and documentation procedures

Good point about the name variations. I learned this the hard way when a filing got rejected because we used 'Corp' instead of 'Corporation' in the debtor name.

For $850K in equipment I'd definitely be more specific in the collateral description. Maybe list the major pieces individually and then add 'and all other manufacturing equipment' to catch everything else.

That sounds useful - do you know if it works with different entity types? We deal with LLCs, corporations, partnerships, all kinds of structures.

Yeah it handles all entity types. The verification is pretty thorough - it even catches subtle things like punctuation differences that might not be obvious when you're reviewing manually.

Interesting. I've been doing manual comparisons between articles of incorporation and UCC drafts but it's time consuming and easy to miss things.

Three times? That must have been expensive with all the filing fees. Did you eventually get it sorted out?

Eventually yes but it delayed the closing by two weeks. The client was NOT happy. Now I triple check everything before submitting.

This is exactly why I always order fresh certified copies right before filing. Entity documents can be amended and you might be working off old versions.

Serial numbers are great when you have them but a lot of older equipment doesn't have clear serial numbers or they're worn off.

True. In those cases I describe by manufacturer, model, and location. The key is being specific enough that someone could identify the exact items you're claiming a security interest in.

What about equipment that might be moved between locations? Do you need to update the UCC if they relocate the collateral?

Generally no if it stays within the same state. But check your security agreement - it might require notice for moves. Different rules apply if they move collateral to another state.

15 years and it still causes stress? That doesn't make me feel better about getting into this field lol

Haha sorry! It gets easier but you never stop being careful. The consequences of getting it wrong are just too big to be casual about it.

What's the typical timeline for getting amendments processed if you do need to fix something?

That's probably the safest approach. Were both entities guarantors or just one?

Both were guarantors but only the actual equipment owners were debtors on the UCCs. Kept it clean and simple.

Makes sense. I've seen deals where they try to put multiple related entities as co-debtors and it just creates complexity.

How long does their verification process take? Sometimes we're under tight deadlines for closings.

It's instant - you just upload the PDFs and get results immediately. Really convenient when you're trying to get filings done quickly.

Instant verification sounds too good to be true. Does it actually catch all the potential issues?

Obviously nothing's perfect but it caught the issue I mentioned. Seems pretty thorough from what I've seen.

Good point. How do you typically check for pending changes?

I ask the client directly and also look at recent board resolutions. Sometimes pending changes aren't reflected in the SOS database yet.

Corporate clients don't always think to mention these things either. They assume you'll know somehow.

Photos are smart. Do you typically take them yourself or have the borrower provide them?

Usually have the borrower provide them but I specify what I need - clear shots showing serial numbers, manufacturer plates, etc. Makes it easier to write accurate descriptions.

Never thought of using photos for UCC prep but that makes total sense. Especially for unique or custom equipment.

Smart approach. Good luck with the filing and the closing!

Let us know how it goes. Always curious to hear about multi-entity deals and how they work out.

You've got this! Just take your time with the name verification and you should be fine.