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.
Fixture Filing
Meaning
Real estate records contain specific entries for personal property that has become so closely associated with a building that it is legally considered part of the land. A fixture filing is necessary for large-scale equipment like a centralized material handling system or a heavy-duty cooling tower bolted to a factory floor. This filing occurs in the county land records rather than the standard central business registry.
The scope is limited to items that cannot be removed without causing damage to the structure.
Property Attachment
Integration of machinery into the physical plant changes its legal character from a moveable asset to a fixture. When a fixture filing is made, it notifies any potential mortgage holder of the building that the moulding press belongs to a different creditor. This prevents the building owner from claiming the equipment as part of the real estate during a foreclosure.
Priority Rank
Lenders who finance specialized infrastructure must compete with the interests of the landlord or the primary mortgage holder. A fixture filing establishes who has the first right to the equipment if the moulder defaults on the lease. Without this specific record, the heavy machinery might be treated as part of the building sale.
Permanent Installation
Some items are clearly fixtures while others occupy a grey area between moveable goods and permanent improvements.