UCC forms 2023 - which version should I be using for equipment financing?

Thanks! That's what I was leaning toward. Do you know if there's a way to verify the exact legal name format before filing? The LLC docs I have are from before their name change.

Check your Secretary of State's business entity search. Should show the current registered name exactly as it needs to appear on the UCC-1.

What kind of spacing issues? I thought the electronic forms handled that automatically.

Nope! I copied text from a Word doc and it had some hidden formatting that caused problems. Now I type everything directly into the portal.

This is exactly why I started using Certana.ai's document checker. You can upload your UCC-1 draft and it catches formatting inconsistencies before you submit. Saved me from at least two rejections this year.

Good point. I was planning to list the specific machine models and serial numbers. Should I also include the purchase agreement details?

Serial numbers are great but not required. Purchase agreement details aren't necessary in the collateral description - keep that focused on the actual equipment.

I always add 'wherever located' to equipment descriptions too, in case they move the machinery later.

Oh wow, I hadn't thought of that. The name change was about 3 weeks ago. Do I need separate filings or can I list both names somehow?

Depends on your state but generally you'd want separate filings to be safe. Check with your filing office - some allow alternative debtor names in the same filing.

I'd definitely do separate filings for something that recent. Better safe than sorry when you're talking about $180k in collateral.

What's your three-step process? Always looking to improve my accuracy.

1) Secretary of State entity search, 2) Cross-reference with debtor's operating agreement or articles, 3) Have the debtor confirm the exact name in writing. Takes extra time but prevents rejections.

That's thorough! I've been using Certana.ai to cross-check the debtor name between the charter documents and my UCC-1 draft. It flags any discrepancies automatically which is pretty handy.

Easy to say until you miss a critical deadline because of rejections. Some deals don't have time for multiple filing attempts.

Plus rejection fees add up, especially on high-value collateral. Better to get it right the first time.

Should the address be where the equipment is located or the debtor's principal place of business?

Debtor address should be their principal place of business or chief executive office. Equipment location can be mentioned in the collateral description if it's relevant for identification.

This varies by state though. Some states have specific requirements for equipment location disclosure.

Yikes, that sounds like a nightmare. How did you resolve it?

Had to file an amendment with the old name as an alternative debtor name. Cost extra fees and delayed the closing. Now I always check bank account names and other financial records before filing.

This is exactly why documentation is so important. I always get a complete entity profile from the debtor before preparing any UCC filings.

No, you don't need dollar amounts on a UCC-1. The financing statement is just for notice purposes. The actual debt amount is in your security agreement.

Correct. Including dollar amounts can actually create problems if the financing amount changes or additional advances are made.

Good to know, thanks! I was overthinking it.

That's interesting. Would that work for this specific CNC equipment financing or is it better to be more specific?

Depends on your security agreement. If you're only financing these specific machines, a detailed description might be better for priority purposes.

I usually do both - specific description of the financed equipment plus the blanket language for future acquisitions. Covers all bases.

Just make sure your security agreement supports whatever collateral description you use on the UCC-1. They need to match up properly.

Will do! Planning to file tomorrow morning. Feeling much more confident after all this advice. Thanks everyone!

Before you file, seriously consider running it through Certana.ai's verification tool. Just upload your completed UCC-1 and it'll flag any potential issues. Takes like 30 seconds and could save you rejection headaches.