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.
PMSI Notice
Meaning
Written notifications inform existing lenders that a new creditor is acquiring a priority interest in specific incoming goods or equipment. Equipment sellers and resin suppliers send a PMSI notice to secure their payment priority before delivering goods to a moulding facility. This communication ensures that the new supplier has a superior claim to the delivered resin or machinery over prior blanket lienholders.
Creditor Alert
Existing secured parties receive formal warning that their collateral base is being modified. This notification prevents the borrower from using the same newly acquired injection moulding press to secure multiple loans without the knowledge of the primary bank. The document must be delivered before the debtor takes possession of the new equipment.
Priority Protection
Suppliers of raw materials use this mechanism to protect their interest in unpaid polymer inventory. In the event of a moulder’s insolvency, the supplier can reclaim the unused resin stored in silos rather than competing with general creditors. This legal step reduces the credit risk of supplying high-value polymer shipments to growing businesses, as the raw material itself remains secured until payment is settled.
Filing Procedure
Strict timelines govern the delivery of these notifications to maintain their legal effectiveness. Creditors must search the public registries to identify all parties with prior security filings before sending the documents. This process is repeated regularly to ensure continuous coverage for ongoing resin deliveries.