We include a Security Agreement And Fixture Filing to get the security interest on the fixtures, equipment, etc., and to provide the fixture filing notice of this personal property lien so as to avoid the need to record a second UCC on the county level to create the fixture filing. This is a standard feature for nearly every dot or mortgage
We do include the UCCs for construction loans as a default feature to make sure to capture all real and personal property collateral to secure the loan obligation. However, there is no requirement to file the UCC and we are happy to manually delete it from your package if you like. We can also talk to our development team to remove that default feature for construction loans. would you like us to do that?
The Assignment of Agreements, Permits, Licenses and Approvals document is a standard feature to make sure that the lender can take over all construction agreements, permits to construct, licenses to manage the construction project, etc., if the lender forecloses and needs to own, complete and operate the construction project. Again, this is a standard protection used in all states.
For the drop-down menu for the construction guaranty option, the user can select between three guaranty types for their construction loans -- a payment (only - no construction completion guaranty), a lien free completion guaranty (only - no repayment guaranty) or a combined full payment and lien free completion guaranty.