UCC Filing Procedures for Protecting Customer Owned Injection Moulding Tools
Protect customer injection molds by filing UCC-1 protective bailments and securing bank subordination waivers before placing steel at a supplier facility.
Blanket Lien
Meaning
Security arrangements grant a lender a legal claim over the entire portfolio of a debtor’s personal property rather than specific identified pieces of equipment. A blanket lien often covers the virgin resin silos and the finished moulded components awaiting shipment. This broad claim captures after-acquired property, meaning any new extrusion line added to the facility becomes part of the collateral automatically.
The interest stops at real estate, which usually requires a separate mortgage.
Collateral Reach
Broad claims provide high levels of protection for lenders financing high-volume plastic production facilities. Because a blanket lien attaches to the fluctuating inventory of polypropylene pellets, the creditor maintains a continuous interest even as stock is consumed and replaced. This structure simplifies the financing of a business that handles hundreds of distinct part numbers and material grades.
Asset Coverage
Every piece of auxiliary equipment from granulators to chillers falls under the scope of this inclusive security interest. A blanket lien ensures that the lender does not need to file a new document every time the moulder purchases a thermolator or a moisture analyser. It provides a catch-all security that stays in place regardless of minor changes in the shop floor layout.
Financial Risk
Debtors face restricted flexibility when their entire asset base is tied to a single financing source. Under a blanket lien, the sale of an old hydraulic press requires the consent of the primary lender to release the specific lien. This constraint can slow down the modernization of a moulding plant.