We have been advised that we should be filing a UCC for every commercial mortgage to "perfect" it.

Do you file UCC for all commercial mortgages?

Thanks

Advised by whom? What State are you in??

Michigan. We have a lender that is very old school & requested the UCC be filed. No one in our Loan Ops dept has done this in the past so it was taken to our bank attorney. This is the language he said needs to be on the UCC to "perfectr" our lien:

all rents, issues, profits, revenues, proceeds, accounts, general intangibles arising from or related to the real property described in Exhibit A attached hereto or any business conducted thereon by Debtor; all equipment, other goods and fixtures of every kind and nature whatsoever, now or hereafter located in or upon the real property described in Exhibit A attached hereto or any part thereof and used or usable in connection with any present or future operation of such real property; and all proceeds of the foregoing.

Is this language included in your mortgage? If not, wouldn't you need a separate security instrument that covers this collateral to go along with the UCC?

This is the language he said needs to be on the UCC to "perfectr" our lien:

Perfect your lien on what? - the real estate? - never heard of that in any State. If you want to protect a line on the items listed in this language than you also need to do what Cowboys Fan has suggested.

Wow. The attorney thinks you can just file a UCC and be good to go if you have no agreement providing those assets as collateral? I think there is a disconnect here.

I am now being told this is to perfect the lien on the personal property located at the address of the mortgage we are taking. Thoughts?

That is fine if that personal property is listed as collateral in your security documents. Just filing a UCC won't take care of it.

I would also question the specific language he's suggested.



It looks to me like Michigan follows the standard definitions of RA9. Rents, Issues, Profits, Revenues, and Proceeds are not defined terms under article 9 and probably do nothing to help you.

eta: just noticed this thread is a couple weeks old and that the language came from your attorney.