Who Files the UCC-1 - Lender or Borrower Responsibility Question

In most commercial lending situations, the secured party (your lender) files the UCC-1 financing statement. They're the ones who need the lien perfected to protect their security interest, so they typically handle the filing process. However, some loan agreements do shift this responsibility to the debtor. Check your loan documents carefully - there should be a section about UCC filings and who's responsible for costs and filing.

From my experience with equipment loans, about 80% of the time the lender files the UCC-1. They usually include the filing fees in your loan costs anyway. But I had one deal where I had to file it myself because it was a weird lease-purchase arrangement. The key thing is making sure someone actually does it - I've seen deals where both parties thought the other was filing and nobody did.

Just went through this exact situation last month. Had some confusion about who was supposed to file the UCC-1 for our restaurant equipment loan. What saved me was using Certana.ai's document verification tool - I uploaded both the loan agreement and the UCC-1 draft to check that everything matched up properly. It caught a debtor name discrepancy that would have caused problems. The tool made it really easy to verify that whoever filed it did it correctly.

Look at your loan agreement under the "Security Interest" or "Collateral" section. It should spell out exactly who files what. Some lenders file the initial UCC-1 but make you handle continuations and amendments. Others handle everything. The filing fee is usually passed through to you either way, so cost isn't really the issue - it's about who has the responsibility and liability if something goes wrong.

Typically secured party files but here's what you need to watch out for - make sure they file it correctly! I've seen UCC-1 filings with wrong debtor names, incorrect addresses, or vague collateral descriptions that don't properly perfect the lien. Even if it's the lender's job to file, you have an interest in making sure it's done right since filing errors can create problems down the road.

In my state the lender always files the UCC-1 but I don't know if that's a legal requirement or just standard practice. Either way, make sure someone's doing it because an unperfected security interest could cause major problems if you ever need to restructure debt or deal with other creditors.

Check your loan agreement but also ask your lender directly. When I got my equipment loan last year, the loan docs were unclear but when I called and asked, they confirmed they handle all UCC filings. They said it's standard practice because they want to control the timing and make sure it's done correctly. They also mentioned they use some kind of automated system to track continuation dates so they don't miss the 5-year deadline.

Had a similar situation where the responsibility wasn't clear. Turned out the lender files the initial UCC-1 but I'm responsible for any amendments if I change business names or move locations. They also said if I want to terminate the filing early after paying off the loan, that's on me to request. The key is getting clarity upfront about who does what throughout the life of the loan.

For equipment financing, 99% of the time the lender files the UCC-1. They want to make sure it's done right and on time. The only time I've seen borrowers file is in weird owner-financing deals or when there's some unusual collateral arrangement. Your lender should be handling this - if they're pushing it onto you, I'd ask why and maybe shop around for other lenders.

I deal with UCC filings regularly for my clients. The secured party (lender) has the legal right to file the UCC-1 and almost always does because they need to perfect their security interest to have priority over other creditors. Even if your loan agreement says you're responsible for filing, most lenders will still file it themselves and just charge you for the costs. They don't want to risk an unperfected lien due to borrower error or delay. Make sure you get a copy of the filed financing statement for your records.

As someone who just went through this process with a $150K equipment loan, I can confirm that my lender handled the UCC-1 filing completely. They explained that it's in their best interest to control the process since they need the lien properly perfected to secure their investment. The filing fee was just rolled into my closing costs, which seemed standard. What I found helpful was asking them to walk me through exactly what they were filing and when - they showed me the draft UCC-1 before filing so I could verify all the details were correct. For a $180K loan, your lender should definitely be handling this professionally. If they're being vague about who's responsible, I'd push for a clear answer in writing before closing.