What is CA UCC statement service - need help understanding options

So it's like a package deal rather than just filing individual forms? That makes more sense. Our lender didn't explain it that way.

Exactly right. Most service companies handle everything from initial filing through final termination. Saves you from having to track continuation deadlines and deal with the SOS portal yourself.

What happens if they mess up the filing? Are we still liable if there's an error?

Good question - most reputable services carry E&O insurance but you should definitely ask about their error policy upfront. I've had minor corrections needed but never a major screw-up.

This is why I always double-check everything before it gets filed. Trust but verify, especially with debtor names.

Never heard of that service - is it expensive? Our budget is pretty tight already.

Way cheaper than dealing with rejected filings or having to file amendments later. Plus it catches stuff you might miss manually comparing documents.

I feel your pain! Lost three hours last week trying to file a simple continuation. The portal kept erroring out right at the payment screen.

That's exactly why outsourcing makes sense. Let the professionals deal with the technical headaches while you focus on your business.

Should I be worried about the collateral description? The equipment list is pretty technical with model numbers and specifications.

As long as it reasonably identifies the collateral, you're fine. Don't need every serial number but should be specific enough to distinguish from other equipment.

I always include manufacturer, model, and approximate year when possible. Better to be too specific than too vague with valuable equipment.

Yikes, how did that get resolved? Did you have to refile everything?

Had to file UCC-3 amendments to correct the debtor name, then provide affidavits to the buyer's attorney proving it was the same entity. Delayed closing by two weeks.

That seems reasonable compared to attorney fees. My lawyer wanted $400 just to review our UCC documents.

Shop around though - pricing varies a lot between providers. Some charge extra for expedited filing or electronic delivery of receipts.

How long does the verification take? We're on a tight timeline for our loan closing.

Almost instant - just upload the PDFs and it shows you any problems within seconds. Much faster than manual review.

Good point - I wouldn't have thought about that step. What happens if you don't file the termination?

The lien stays on record indefinitely, which can cause problems if you try to refinance or sell. Always clean up your UCC filings when loans are paid off.

Some lenders handle termination automatically but many don't. I always put it in writing who's responsible for filing the termination statement.

Thanks everyone - this really helped clarify what we're looking at. Sounds like it's worth getting professional help rather than trying to figure it out ourselves.

Smart choice. UCC filings are too important to mess up, especially with that much money involved.

Great point about timing! I'm curious - how far in advance should we start the UCC filing process? Our lender hasn't given us a specific timeline yet, but I want to make sure we're not scrambling at the last minute. Also, regarding the multiple locations issue, our machinery will be installed at our main facility but we might need to move some pieces to a secondary location later. Should we mention both addresses in the initial filing or handle that with an amendment later?

For timing, I'd recommend starting the UCC filing process at least 5-7 business days before your funding deadline. While electronic filings in CA are usually processed within 24-48 hours, you want buffer time for any rejection corrections or name verification issues. Regarding multiple locations, you have a couple options: you can file with a general description like "equipment located at debtor's facilities" or list specific addresses. If you know you'll be moving equipment between locations, the broader description might save you from filing amendments later. Just make sure your lender is okay with the collateral description approach you choose.

This is really helpful advice about entity name verification! I hadn't thought about the Inc vs LLC issue but that makes total sense. Quick question - when you mention getting a UCC search done first, is that something the statement service typically includes or do we need to order that separately? And roughly what does a search cost? We want to be thorough but also mindful of costs adding up. Also, regarding the fixture filing distinction, how do we know if our machinery would be considered fixtures? It's industrial equipment that will be bolted down but could theoretically be removed and relocated.