Who can file a UCC lien - confused about authorized parties and requirements

This is correct. We file UCC liens for our bank clients all the time as their authorized agent. Just need documentation of the authorization.

Wait, borrowers can file their own UCC liens against themselves? That seems backwards to me.

Thanks, that helps clarify. So as long as we have authorization documentation, our law firm can handle the actual filing process?

Exactly. Most law firms prefer to handle UCC filings themselves to ensure everything is done correctly and on time.

Name mismatches are the worst! How does that Certana thing work exactly?

You just upload PDFs of your charter documents and your UCC-1 draft, and it cross-checks all the names and details automatically. Shows you exactly what doesn't match so you can fix it before submitting to the state.

That sounds useful. We've had rejections for stupid punctuation differences before.

Good point about checking the POA language. I'll review that carefully before proceeding.

Also make sure the POA is still valid and hasn't been revoked. We've seen issues where old POAs were used for filings.

True, but if there's ever a dispute about the filing, having clear authorization documentation protects everyone involved.

Yeah the SOS is just processing paperwork. They assume whoever is filing has the right to do so.

That makes sense. I'll check our loan agreement language about UCC filing authority.

SBA lenders are usually pretty experienced with UCC filings since it's required for most equipment loans.

Just make sure they actually do it! We've seen deals where everyone assumed someone else was handling the UCC filing.

Which states have those restrictions? I thought most were pretty open now.

It varies, but some still require registration or have different fee structures for different types of filers. Best to check with your specific state's SOS office.

Agree on the collateral description being critical. Too vague and you might not have a perfected security interest.

We always do a test filing first with a small amount to make sure everything processes correctly.

Filing services are great if you don't do many UCCs. They know all the state-specific quirks.

Just make sure any service you use has good accuracy rates. A rejected filing can mess up your lien priority.

Perfect summary, thanks everyone. This has been really helpful in understanding the authorization requirements.

Just remember to keep copies of all authorization documents in your loan file for compliance purposes.

And double-check everything before filing! I've learned that lesson the hard way.

This is excellent advice, especially about the renewal tracking! I've seen too many deals where people forget about the 5-year continuation requirement and lose their perfected security interest. Setting up calendar reminders or using a loan management system that tracks UCC renewals automatically is crucial for portfolio lenders. The professional filing service route makes a lot of sense for complex deals like this - they usually have good relationships with the various state offices and can expedite things if needed.

Great questions! Most professional filing services provide same-day electronic confirmation when filings are accepted by the state systems, usually within a few hours. For the multi-state equipment issue, you typically file where the equipment is located at the time of the transaction. If equipment moves permanently to another state, you generally have 4 months to file a new UCC in the destination state to maintain perfection (this varies by state though). For mobile equipment like construction machinery, some lenders file in multiple states upfront if they know the equipment will be moving around regularly. It's definitely more complex than single-state deals, but filing services that specialize in this can help navigate the different state requirements and timing rules.

Adding to Harper's excellent response - I'd strongly recommend working with a filing service that has experience with mobile equipment. They can set up a monitoring system to track when equipment crosses state lines and automatically handle the continuation filings. For construction equipment specifically, some states have special provisions for "mobile goods" that can simplify the process. Also worth noting that the 4-month rule Harper mentioned can vary - some states give you only 60 days, so it's critical to know the specific requirements for each jurisdiction where your equipment might operate. The upfront cost of filing in multiple states is usually worth it for peace of mind, especially on a $340K deal where you can't afford gaps in perfection.

Excellent point about getting certified copies! I learned this the hard way when we had to enforce a security interest and the court wanted official documentation, not just our filing service confirmation. The certified copy also helps if there are ever questions about the exact filing date or content. On the SBA coordination aspect - that's something I hadn't considered but makes total sense. Do you typically file the personal guaranty UCCs at the same time as the business equipment UCC, or is there a specific sequence that works best? I'm assuming the timing could affect lien priority if there are other creditors involved.