Commercial with Collateral as Operating Interest

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Question:

I have a commercial loan with collateral as "operating interest in wells." Do we need a mortgage, UCC or both to perfect a security interest in this? Also, is this collateral even considered real estate collateral?

Answer:

I would already have this question sitting in bank counsel's in-basket. If policy/procedure doesn't tell you how to perfect an enforceable lien on a type of collateral that's acceptable under your credit policy, then counsel's opinion will be the beginning of an addition to that policy.