Security Instrument / Property or State Specifics
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      UCC-1 Questions

      1.  The UCC process can be specific and regimented. As such, GoDocs does not provide UCC releases/terminations as this process must be handled correctly.
        We recommend Lender work with their UCC servicer for the proper forms and processes to accurately complete their request. 
      2. Where do I file the UCC-1s?
        1. In all cases, a UCC-1 should be filed with the Secretary of State in the state where the individual lives or the formation state of the entity.  This includes both the fixture filing and the personal property UCC filing.
        2. Then, the mortgage/deed of trust with a UCC fixture filing included in it should be recorded in the county where the property is located so the lender has a perfected security interest in the fixtures located on the real property.  
      3. GoDocs produces two filings (1) Personal and (2) Fixture, in which both would be filed with the State in where the borrowing entity was formed or the individual lives.  There is not a separate UCC form filing for county?  The Mortgage/Deed of Trust has a provision embedded in the document for this?
        1. The GoDocs mortgage/deed of trust is also an Assignment of Rents, Security Agreement and Fixture Filing. As the document is recorded at the property level (commonly the county), it facilitates local fixture filing recording. The UCC1 filing at the state level acts as the filing of the security agreement aspect of the mortgage/deed of trust. Regardless of UCC1 filing, the security agreement aspect of the document, under the UCC, is established. The security agreement, and accompanying UCC1, relates to the mortgage/deed of trust, is about collateral that is real estate, or fixtures of the real estate, but still considered part of the property. GoDocs does offer the ability to include non-real estate-related collateral through a separate General Security Agreement. When there is a mortgage/deed of trust security agreement and a General Security Agreement, there would be separate, specific UCC1s for filing at the state level, if the filing is desired.
        2. When General Security Agreement = Yes on the Loan page, there are two UCC filings. The first filing is a personal property filing. The UCC-1 references Exhibit A and Exhibit A is the GSA for personal property. The second filing is the security agreement of the mortgage/deed of trust. The UCC-1 references that the collateral is located on Exhibit B. Exhibit A is the location of the property (the legal description) and Exhibit B is the Fixture filing collateral.   The UCC-1 Financing Statement (Personal Property Collateral) is triggered for inclusion if General Security Agreement = Yes on the Loan page. This UCC1 is for the General Security agreement, which is for all business assets; such assets are not real estate related collateral. The collateral is described on Exhibit “A”, attached thereto. There is only one exhibit. The UCC-1 Financing Statement and Exhibits for Filing is for the security agreement included with the mortgage/deed of trust and covers such real estate related collateral, that is not real estate or fixtures. The collateral is described on Exhibit “B”, attached thereto; Exhibit “A” is used to identify such collateral as “... which are used now or in the future in connection with the ownership, management or operation of the real property described [thereto]...”.
        3. When General Security Agreement = No so the second UCC personal property filing does not come in.   The UCC-1 you see coming in is the security agreement of the mortgage/deed of trust.  Because of that, exhibit A describes the location of the property (the legal description) and exhibit B is the exhibit outlining the real estate related collateral.   As stated above if a GSA was selected you would have received a second UCC-1 wherein, exhibit A is the personal property GSA description. 
      4. On the UCC, it states there is only Exhibit B, but Exhibit A & B is both included for filing so shouldn’t it reference both?  Otherwise, title may not record with both exhibits?
        1. Title should never “record” a UCC1 provided by GoDocs. In all cases, a UCC-1 should be filed with the Secretary of State in the state where the individual lives or the formation state of the entity. The Exhibit “A” is referenced in Exhibit “B” and the document works together, as intended.