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FIXTURE FILINGS

It is common in commercial mortgage transactions in Ohio to file fixture financing statements in the office of the county recorder where the mortgage is filed and with the Ohio Secretary of State. It is odd that this practice developed in Ohio since, pursuant to ORC 1309.502(C), a mortgage can be a fixture filing if it meets the minimal requirements of this statute. So, while it is standard practice to file a fixture financing statement with the county recorder; generally there is no need to do so since almost all commercial mortgages meet the requirements of ORC 1309.502 to be a fixture filing.

This becomes an issue when it is time to continue the financing statements, which, pursuant to ORC 1309.515(A), are good for five (5) years. At the end of five (5) years do you file a continuation of the fixture financing statement filed with the county recorder?

Relevant to this issues is ORC 1309.515 (G) which states in part, “A record of a mortgage that is effective as a financing statement filed as a fixture filing under division (C) of Section 1309.502 of the Revised Code remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property”.

Regarding the question of continuing the fixture financing statement filed with the county recorder, there is no exception in the Revised Code which exempts fixture financing statements from the need to update every five (5) years. However, the question is usually moot because the mortgage acts as a fixture filing any way and it does not expire.

 This does not however, change the need to continue the fixture filing with the Ohio Secretary of State. This is because there may be other collateral beyond fixtures included within that filing.

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