Uniform Commercial Code
Fixtures are part of the real estate. Therefore, a lien (such as a UCC) against a fixture must generally be excepted when insuring title to the land.
UCCs By Lessees
For Informational Purposes Only: The Company will not specifically except to the following financing statements in the Policy to be issued because same apply to personalty (which is not insured) or to the interest of lessees in the land:
Comment: Sometimes UCCs against lessees are not specifically excepted in a loan policy on the fee if the Company except to the lease and disclose the UCCs.
Require Release of UCC
The Company requires for its review a satisfactory termination (or release of the land) of the Financing Statement.
Comment: Separately filed UCCs must be released unless barred (over 5 years old and no continuation or bankruptcy). You may not rely upon a nonjudicial foreclosure of a prior mortgage to waive the UCC.
Except to Fixtures in UCC
Rights of others in and to fixtures described in that financing statement recorded _____________________.
Comment: If a lessee executed a UCC and the new insured lender on the fee objects to the UCC exception, the Company prefers to carve out the itemized fixtures covered by the UCC.