I have a question, We have a customer who currently has a UCC on all equipment. This customer is using purchase money to obtain another piece of equipment. Would this new piece of equipment fall under the UCC on all equipment or would we have to file a UCC for purchase money? Any help would be great.

Thanks,

Review your State's UCC § 9-324. PRIORITY OF PURCHASE-MONEY SECURITY INTERESTS or talk to your attorney.

To have purchase money priority, you have to be perfected within 20 days after the debtor takes possession of the collateral. You have to file a UCC to have a perfected security interest in equipment. If the prior UCC is in favor of your bank and is broad enough in scope to cover the new equipment and covers after-acquired property, you may not need a new filing.

Article 9 is one of the most varied-by-state articles in the UCC. So regardless of any information offered by posters in this thread, you really have to conform to Article 9 in your state. I support Randy Carey's response.

Heather's question was about how to perfect the security interest, not whether it would have priority. 9-324 generally applies to a security interest that has been perfected. To know whether a filing is necessary to perfect the security interest she referred to, one would have to consult 9-310 and 9-108.