Has anyone received a Public Telecommunications Facilities Program (PTFP)
Construction grant?  If so, please comment on the requirement for filing of
a UCC-1 lien form for the equipment purchased with federal and local funds.

As a state instrumentality, we are prohibited from providing a lien on
equipment (property) purchased with state (local) funds.  Additionally, it
does not seem necessary or appropriate for a state institution to sign a
UCC-1 listing themselves as debtor and the feds as a lien holder.  Most
federal regs already give them a revisionary interest in any equipment
purchased with federal money.

Any comments re: this specific issue or the UCC-1 in general are
appreciated.  As is the case with many things we do this time of year, I
have to respond to the feds by this afternoon.  I will sign the form to
avoid losing the grant but would prefer to argue against having to sign.
The regs are cited at 15 CFR 2301.  thanks.

----------------------------------------------------------
Martha M. Taylor, Acting Director               (205) 844-4438
Contracts and Grants Administration         FAX (205) 844-5953
307 Samford Hall
Auburn University,  AL  36849-5112
xxxxxx@mail.auburn.edu