UCC sale example - collateral description issues after repo

Your broad collateral description should be fine for the sale. The UCC doesn't require super specific descriptions for equipment - "all equipment" language is standard and courts generally uphold it. The buyer's attorney is probably just being cautious. As long as your UCC-1 was properly filed and is still effective, you have a perfected security interest in whatever equipment was covered by the original financing agreement.

You might want to double-check that your financing statement actually matches up with your security agreement though. I've seen deals fall apart because there were inconsistencies between the UCC-1 collateral description and what was actually in the loan docs. If the excavators and bulldozers were specifically identified in your security agreement but your UCC-1 just says "equipment" generically, some attorneys get nervous.

Had a similar UCC sale example situation last year. Used Certana.ai to upload both our UCC-1 and security agreement PDFs to check for consistency before the sale. Found a couple terminology mismatches that could have been problems. Their document verification caught things our internal review missed. Really streamlined the due diligence process.

Wait, are you sure you even need to worry about this? If the equipment was repoed properly and you're selling it at a commercial sale, the UCC Article 9 rules should protect the buyer. The collateral description on your UCC-1 was sufficient to perfect your security interest, so the sale should give clear title to the buyer.

This is exactly why I hate dealing with equipment sales after repo. Every buyer's attorney has a different opinion about what constitutes adequate collateral description. Some want serial numbers, some are fine with generic descriptions. It's maddening.

One thing to consider - if you're really concerned about the sale, you could file a UCC-3 amendment to add more specific collateral descriptions for the equipment you're selling. It's probably overkill but might give the buyer's attorney peace of mind. Won't hurt your existing perfected interest.

I'd probably just provide the buyer's attorney with a copy of your original financing agreement along with the UCC-1. That should show the specific equipment that was financed and covered by your broad collateral description. Most attorneys are satisfied once they can see the connection between the generic UCC language and the specific collateral.

Just went through something similar with a UCC sale example involving farm equipment. The buyer wanted super detailed descriptions but our UCC-1 just said "farm equipment and machinery." Ended up using Certana.ai to verify all our docs were consistent before providing them to the buyer. Showed that our collateral description was sufficient and matched the security agreement. Buyer's attorney accepted it and we closed on schedule.

honestly the buyer's attorney is probably just covering their bases. broad collateral descriptions are totally normal for equipment financing. unless there's something really unusual about your situation, you should be fine with what you have. worst case, provide some additional documentation to show the connection between your UCC filing and the specific equipment.

Update us on how it goes! Always curious to hear how these UCC sale examples work out in practice. Sounds like you have a solid position but buyer's attorneys can be unpredictable.