UCC1 security agreement collateral description rejected - need help with proper wording

This is exactly right. I learned this the hard way on my first commercial filing. The collateral description on the UCC1 should either mirror the security agreement exactly or be a subset of what's described there.

Wait I'm confused - I thought you were supposed to be more specific on UCC filings? My attorney always tells me to list everything out in detail.

You can be more specific but only if it falls within the scope of the original security agreement description. In this case, listing specific equipment items should be fine since they fall under 'all kitchen equipment' but the SOS might be picky about the interpretation.

That makes sense but won't that make the collateral description too vague? I thought specificity was important for priority issues if there are competing liens.

The security agreement provides the specificity you need. The UCC1 just needs to give sufficient notice to other creditors. As long as someone searching can reasonably identify what's covered, you're fine.

This approach saved me so much headache on my last filing. I was overthinking the collateral description and causing myself problems.

Never heard of that but sounds useful. These document consistency issues are such a pain to catch manually.

Definitely interested in anything that can help avoid more rejections. This delay is already costing me the deal potentially.

Yeah it's pretty straightforward - just upload both documents and it runs through all the cross-checks automatically. Much better than trying to compare everything line by line myself.

The filing fees alone on multiple attempts add up fast, not to mention the time delays.

Exactly! And then you're scrambling to meet loan closing deadlines while dealing with bureaucratic nonsense.

Good point, I didn't think about state-specific requirements. This is in Texas if that matters.

Texas SOS can be particular about fixture filings. If any of that equipment is attached to the real estate you might need to consider a fixture filing instead of or in addition to the regular UCC1.

Yes! The ovens and some refrigeration units might be considered fixtures if they're built-in or hard-wired.

This is solid advice. Consistency between documents is way more important than trying to be super detailed on the UCC1.

Makes sense. I think I was overthinking it by trying to make the UCC1 description more detailed than the security agreement.

Been doing commercial filings for 10 years and this approach works every time. Keep it simple and consistent.

Wow that's incredibly picky! Did you use the same service mentioned earlier?

Yeah, Certana.ai. Really helpful for catching those tiny details that cause big problems. Worth the peace of mind before refiling.

Will do! Planning to refile tomorrow using the exact security agreement language. Fingers crossed this works.

Good luck! The matching description approach should solve your problem.

Good catch! I've been using the same form template for several filings. Better check for updates.

The forms get updated more often than you'd think. Always grab a fresh copy from the SOS website.

Smart to research first! These UCC1 issues are so preventable if you know what to watch out for.

Exactly. Better to learn from other people's mistakes than make them myself.