What does a UCC financing statement do?

What does a UCC financing statement do?

A UCC financing statement — also called a UCC-1 financing statement or a UCC-1 filing — is a legal form that allows a lender to announce a lien on an asset to secure a loan. By filing the UCC financing statement, the lender is giving notice that it has an interest in the property listed in the filing.

Who is the secured party in a UCC filing?

A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed.

Are UCC financing statements public?

Lenders competing for borrowers might use the UCC as a marketing tool—because UCC filings are public records, lenders can use these records to find customers that are already familiar with their lending products to pitch them financing offers.

Who can terminate a UCC financing statement?

The secured party has 20 days to either terminate the filing or send a termination statement to the debtor that the debtor can then file. If this does not happen within the 20-day time frame, the debtor may file a UCC-3 termination statement.

What do you need to know about a UCC financing statement?

How does a UCC-1 work for personal property?

When one files this statement it tells the public, as well as future lenders, that specific personal property has been pledged as security for an existing debt. So, whoever properly files a UCC-1 for the specified property has priority over that property.

When do secured parties file a financing statement?

In In re The Adoni Group, 530 B.R. 592 (Bankr. S.D.N.Y. 2015), the secured party filed a financing statement before the parties had executed a security agreement, and without the debtor having otherwise authorized the filing in writing.

How do I add a debtor to my UCC statement?

To add a debtor, click “Add a debtor.” To remove a debtor, click “delete” to the right of the debtor’s information. To edit a debtor, click the debtor’s name. When you have finished, click “Continue.”