UCC Filing

Last Updated: Jun 7, 2019

Created By :

Last Edited By :

Created On :

A UCC-1 is a “financing statement” filed to provide notice that a creditor has a security interest in a debtor’s personal property. It is not an agreement. It is just notice to the world that one person claims an interest in someone else's property, usually as collateral for a debt. Filing a financing statement allows a creditor to perfect a security interest in the collateral and establish priority in case of debtor default or bankruptcy. Once the form has been filed, the creditor establishes a relative priority with other creditors of the debtor. This process is also called "perfecting the security interest" in the property, and this type of loan is a secured loan. Documents filed include initial financing statements, amendments, assignments, and other UCC filings authorized by each State's statues. A UCC financing statement is valid for 5-years, unless terminated earlier through a termination filing. It can be renewed for an unlimited number of times.