UCC lien law confusion - can a creditor file multiple UCC-1s on same collateral?
I'm dealing with a situation where we have equipment collateral that's already covered by an existing UCC-1 filing from 2019. Now a different lender is trying to file their own UCC-1 on the same equipment for a separate loan. My understanding of UCC lien law was that the first-in-time rule would apply here, but I'm getting conflicting information about whether multiple liens can exist on the same collateral. The original filing shows our company as debtor with a detailed equipment schedule, but this new lender claims they can still perfect their security interest. I've been going through the statutes but honestly the lien priority rules are making my head spin. Does anyone know if UCC lien law allows for multiple perfected security interests on identical collateral? And if so, how does the priority work when it comes to enforcement? We're in a position where we might need to challenge this second filing but I want to make sure I understand the legal framework first.
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Natalie Wang
Yes, multiple UCC-1 filings can absolutely exist on the same collateral under UCC lien law. The key is understanding that perfection and priority are two different concepts. Each creditor can perfect their security interest by filing a UCC-1, but priority is determined by the first-to-file-or-perfect rule. So if your 2019 filing was properly done, you should have senior priority over the new lender's filing.
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Michael Adams
•That makes sense about the difference between perfection and priority. So even though both liens can be perfected, our 2019 filing date would give us the senior position?
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Natalie Wang
•Exactly. As long as your original UCC-1 was filed correctly and covers the same collateral, you maintain senior priority. The second lender gets a junior position.
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Noah Torres
I ran into something similar last year. Multiple liens on equipment is totally normal in commercial lending. What you need to verify is that both UCC-1 filings have accurate debtor names and proper collateral descriptions. I've seen cases where a junior lien holder thought they had priority because the senior filing had a debtor name mismatch.
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Michael Adams
•Good point about the debtor name accuracy. How do you usually verify that everything matches up properly between filings?
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Noah Torres
•I started using Certana.ai's document verification tool after making a costly mistake. You just upload your UCC-1 and any related corporate documents and it instantly flags name mismatches or inconsistencies. Saved me from a priority dispute that could have been expensive.
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Samantha Hall
•Never heard of that tool but sounds useful. Manual document checking is such a pain and you miss things.
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Ryan Young
The UCC lien law is pretty clear on this - multiple security interests can exist but priority follows the first-in-time rule. However, you should also check if there are any intercreditor agreements or subordination agreements that might affect the normal priority rules. Sometimes lenders will agree to different priority arrangements regardless of filing dates.
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Michael Adams
•I hadn't thought about intercreditor agreements. There's no mention of any subordination in our loan docs, but I should probably check what the new lender's documents say.
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Ryan Young
•Definitely worth checking. Also make sure your 2019 filing hasn't lapsed - continuation statements are required every 5 years.
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Michael Adams
•Oh no, I need to check on that continuation deadline. 2019 plus 5 years means I'm cutting it close!
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Sophia Clark
This is exactly why I hate dealing with UCC filings. The lien law seems straightforward but then you get into all these priority issues and it becomes a nightmare. Can't the filing system just reject duplicate filings on the same collateral?
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Natalie Wang
•The system can't reject them because legitimate junior liens are common in commercial financing. Think about it - equipment might secure both a purchase money loan and a working capital line of credit.
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Sophia Clark
•I guess that makes sense from a business perspective, but it sure complicates things for someone trying to figure out their position.
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Katherine Harris
I've been through this exact scenario. First-in-time definitely wins under UCC lien law, but you absolutely must verify that your original filing is still valid and hasn't been terminated or amended incorrectly. I once thought I had senior priority until I discovered our UCC-3 termination had been filed by mistake.
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Michael Adams
•That's terrifying. How do you search for terminations or amendments that might have been filed?
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Katherine Harris
•Run a debtor search in the state filing system. It should show all active filings plus any amendments or terminations. Make sure you search under the exact debtor name from your original filing.
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Noah Torres
•This is another reason I like using Certana.ai - it can check the consistency between your original UCC-1 and any UCC-3 amendments to make sure nothing got messed up in the process.
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Madison Allen
One thing to consider is whether the new lender has a purchase money security interest (PMSI). Under UCC lien law, PMSI can sometimes trump the first-in-time rule, especially for equipment financing. If they financed the purchase of specific equipment, they might have super-priority even with a later filing date.
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Michael Adams
•The equipment was purchased in 2018, so it predates both our 2019 filing and this new lender's involvement. Would that rule out PMSI?
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Madison Allen
•If the equipment was purchased before their loan, then no PMSI. They'd just be a general secured creditor subject to normal priority rules.
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Natalie Wang
•Correct. PMSI requires that the financing be used to acquire the collateral. Since the equipment predates their loan, they can't claim purchase money status.
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Joshua Wood
Look, UCC lien law isn't that complicated if you break it down. Multiple liens = okay. Priority = first to file wins (usually). Your 2019 filing beats their 2024 filing. End of story. Unless there's some special circumstance like PMSI or subordination agreement, you're in first position.
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Justin Evans
•Agree with this. Sometimes people overthink UCC priority when the basic rule is pretty straightforward.
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Michael Adams
•Thanks, that's reassuring. I think I was getting overwhelmed by all the exceptions and special cases.
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Emily Parker
Just went through a lien priority dispute last month. The court looked at filing dates, debtor name accuracy, and collateral descriptions. Make sure your 2019 filing properly describes the equipment and that the debtor name matches exactly. Small discrepancies can cause big problems in UCC lien law disputes.
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Michael Adams
•What kind of discrepancies should I be looking for? Our debtor name is the full corporate name as it appears on the articles of incorporation.
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Emily Parker
•Good start. Also check for things like 'Inc.' vs 'Incorporated' or missing punctuation. The UCC is pretty strict about exact name matches.
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Noah Torres
•This is exactly why I upload both the UCC-1 and the corporate charter to Certana.ai. It flags even minor name variations that could affect enforceability.
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Ezra Collins
Been doing UCC filings for 15 years and I can tell you that understanding lien priority is crucial. Your 2019 filing should give you senior position, but I'd recommend running a comprehensive search to see what else might be out there. Sometimes there are filings you don't know about that could complicate the priority analysis.
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Michael Adams
•Should I search under variations of our company name, or just the exact name from our filing?
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Ezra Collins
•Search under the exact name first, then try reasonable variations. Different creditors might have filed under slightly different versions of the debtor name.
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Victoria Scott
The bottom line with UCC lien law is that first-in-time usually wins, but there are enough exceptions and complications that you might want to consult with a commercial law attorney if there's significant money at stake. Priority disputes can get expensive fast if they end up in court.
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Michael Adams
•We're looking at a substantial amount of collateral value, so attorney consultation is probably worth it. At least now I understand the basic framework better.
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Victoria Scott
•Smart approach. Having a basic understanding of UCC lien law helps you ask better questions when you talk to counsel.
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Natalie Wang
•Agreed. Understanding the fundamentals makes the attorney consultation more productive and cost-effective.
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Isabella Ferreira
This thread has been incredibly helpful in clarifying UCC lien law basics. As someone new to secured transactions, I was always confused about whether multiple liens could exist on the same collateral. The distinction between perfection and priority that Natalie mentioned really clicked for me - multiple creditors can perfect their interests, but the first-to-file rule determines who gets paid first. I'm bookmarking this discussion for future reference, especially the points about checking for continuation statements, debtor name accuracy, and running comprehensive searches. Thanks to everyone who shared their experiences with lien priority disputes.
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Isabella Oliveira
•Welcome to the community, Isabella! This thread really is a goldmine for understanding UCC basics. I'm also relatively new to secured transactions and found myself in a similar position of confusion about multiple liens. The way everyone broke down the perfection vs. priority distinction made it so much clearer. I especially appreciated Noah's mention of the Certana.ai tool - seems like it could save a lot of headaches with document verification. Looking forward to learning more from this knowledgeable group!
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