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.
Mold Repossession
Meaning
Physical act of reclaiming production tooling occurs when a customer or a lender removes a mould from a contract manufacturer’s facility. The act of mold repossession is typically triggered by a default on payment or a breach of the supply agreement. This process requires clear evidence of ownership, often verified through a stamped tool number or a UCC filing.
The boundary of this action is defined by the physical location of the tool and the legal right to entry.
Operational Impact
Abrupt removal of a multi-cavity tool immediately halts the production of specific plastic components. During mold repossession, the lack of a backup tool at an alternative site can lead to a total supply chain failure. The moulder losing the tool also loses the associated revenue from the press time and the resin mark-up.
Legal Authorization
Rights to seize property must be exercised according to the terms of the bailment agreement or a court order. A successful mold repossession avoids a breach of the peace and often involves the presence of a neutral third party or law enforcement. Without proper documentation, the act of taking the tool can be challenged as a theft or a trespass.
Physical Recovery
Transporting a heavy steel tool requires specialized rigging equipment and a dedicated logistics plan to avoid damage during transit.