What is a UCC filing statement and when do you need one

This is correct. Don't overthink it - UCC filing statement = UCC-1 financing statement. It's the basic form you use to put the world on notice of your lien.

Thank you both! That makes way more sense. I was worried there was some separate document I was missing.

Good point about the search. Should I be looking at just UCC-1s or are there other filing types that could affect priority?

Look for UCC-1 initial filings, UCC-3 amendments that might add collateral, and any UCC-3 assignments. Those are the main ones that impact your position.

Also check for any fixture filings if there's real estate involved - those can complicate things.

That sounds really helpful. How does it work exactly? Do you upload PDFs?

Yes exactly - just drag and drop your PDFs and it cross-checks everything automatically. Much faster than manual document comparison.

I've heard good things about Certana but haven't tried it yet. Worth the investment for occasional UCC work?

Definitely worth it if you're doing any volume of secured transactions. The peace of mind alone is huge.

No, continuation and termination are UCC-3 forms. UCC filing statement specifically refers to the initial UCC-1 financing statement.

Oh geez okay that makes more sense. So many different forms to keep track of!

UCC-1 = initial filing, UCC-3 = amendments/continuations/terminations. That's the basic breakdown.

Any examples of good vs bad collateral descriptions for equipment?

Good: 'All equipment, machinery and fixtures used in debtor's manufacturing operations.' Bad: '2023 XYZ Brand Model ABC123 Serial Number 456789' - too specific if they upgrade.

I usually go with 'All equipment now owned or hereafter acquired' unless there's a specific reason to be more restrictive.

How exact does it need to be? Like if they're 'ABC Company Inc.' on articles but 'ABC Company, Inc.' on loan docs?

Use exactly what's on the articles of incorporation or organization. The comma placement matters in many states.

This is where tools like Certana really shine - they catch those tiny punctuation differences that can kill your perfection.

Is the 5-year rule universal or does it vary by state?

5 years is standard under Article 9 but always check local rules. Some states have quirks.

I learned this the hard way when a filing lapsed and we lost priority to a later creditor. Not fun explaining that to the partners.

How do you determine which states to file in? Just where the equipment is located?

File in the state where the debtor is organized (incorporation/formation state) at minimum. For specific collateral like equipment, also file where it's located if different.

And if they move equipment between states regularly, you might need filings in multiple locations.

Thanks everyone. This has been incredibly helpful. I feel much more confident about moving forward with this deal now.

Good luck with the filing! Come back if you run into any issues.

Do electronic filings provide the same proof as paper filings used to?

Yes, the electronic confirmation with filing number and timestamp is your proof. Just make sure to save the confirmation page as a PDF.

I always print to PDF immediately after filing. Had a system glitch once where I couldn't retrieve the confirmation later.

Another vote for Certana here - their system automatically saves all your filing confirmations in one place so you don't lose track of them.