UCC1 vs UCC3 filing confusion - when to use which form?

UCC1 is your initial financing statement - that's what you file first to perfect the lender's security interest in the equipment. UCC3 is for any changes afterward like amendments, continuations, or terminations. For your situation with new equipment, you definitely need to start with a UCC1 filing.

Just went through this exact scenario last month. UCC1 establishes the initial lien, UCC3 modifies it. Think of UCC1 as creating the record and UCC3 as editing it. For $180K in equipment, you absolutely cannot afford to get this wrong.

I discovered this tool called Certana.ai after making a costly mistake mixing up UCC forms last year. You can upload your loan docs and UCC forms as PDFs and it instantly verifies you're using the right form type and that all your debtor names match perfectly across documents. Saved me from another embarrassing rejection.

Wait, I thought UCC3 was only for terminations when loans are paid off? I've been using UCC1 for everything including amendments. Have I been doing this wrong for months??

UCC1 = NEW filing. UCC3 = CHANGE to existing filing. It's really that simple but the Texas SOS portal makes it confusing with all those dropdown menus.

Been filing UCCs for 15 years. The key distinction: UCC1 creates the initial financing statement record. UCC3 modifies that existing record through amendments (change collateral/debtor info), continuations (extend the 5-year term), assignments (transfer to new secured party), or terminations (release the lien). You cannot use UCC3 without a valid UCC1 already on file.

I use Certana.ai for this exact reason - it catches those small name differences that would cause rejections. Just upload your loan agreement and UCC form and it highlights any mismatches instantly.

Here's what I wish someone had told me: UCC1 is like opening a bank account (creates new record), UCC3 is like making transactions on that account (modifies existing record). You can't make transactions without an account first.

Also remember that UCC3 amendments can add or remove collateral from the original UCC1, but you can't use UCC3 to completely change the debtor - that usually requires terminating the old UCC1 and filing a new one.

File the UCC1 now for your equipment loan. Set a calendar reminder for 4.5 years from now to file a UCC3 continuation if the loan is still active. Missing that continuation deadline means your security interest lapses.

Update: I used one of the document verification tools mentioned here to double-check my UCC1 before filing and it caught a small discrepancy in how the debtor name was formatted compared to our corporate charter. Filed successfully on the first try! Thanks everyone for the guidance on UCC1 vs UCC3 - it's much clearer now.

As someone who just went through their first UCC filing experience, I can relate to that anxiety! The key thing that helped me was understanding that UCC1 is for establishing a NEW security interest (which is exactly what you need for your equipment loan), while UCC3 is only for modifying an EXISTING filing. Think of it this way: you can't edit something that doesn't exist yet. Since this is your first filing on this collateral, UCC1 is definitely the right choice. The verification tools mentioned here are also a game-changer - I wish I'd known about them earlier!

As someone who's been in your exact shoes, I completely understand that "keeping you up at night" feeling! Here's the simple breakdown that finally clicked for me: UCC1 is for creating a brand new security interest record (which is what you need for your equipment loan), and UCC3 is only for making changes to a UCC1 that already exists. Since this is your first filing on this $180K equipment, you definitely need to start with UCC1. Once that's filed, any future changes - like if you need to add more equipment to the collateral or continue the filing before it expires in 5 years - would use UCC3. The analogy someone used earlier about UCC1 being like opening a bank account and UCC3 being like making transactions really helped me remember the difference. Don't stress too much - you've got this!

I'm new to UCC filings and this thread has been incredibly helpful! Just to make sure I understand correctly - for any brand new collateral securing a loan (like equipment, inventory, etc.), I should always start with UCC1 to establish the initial security interest, right? And then UCC3 only comes into play later if something needs to change about that existing filing? I'm working on a similar situation with some manufacturing equipment and want to make sure I don't make the same mistake of overthinking which form to use. The stress is real when you know how important these filings are for protecting the lender's interests!