Uniform Commercial Code-1 (UCC-1) Financing Statement
Handling credit often requires much attention by both parties, due to a number of important factors. The primary point that should be figure out between the parties of the loan agreement (the creditor and debtor) is the type of the loan and whether it is secured or unsecured. A Uniform Commercial Code-1 (UCC-1) Financing Statement is a legally recognized form that must be used for to perfect security interest. Having made a public notice, the creditor is then able to take possession of and/or sell some assets so as to repay a specific debt with a certain level of priority over the other creditors, if any.
The secured loan is supported by some sort of collateral, which is typically the debtor’s property. The unsecured loan can be issued based exclusively upon the debtor’s creditworthiness, which makes it a riskier type of credit for lenders. In case the borrower fails to pay the debt defined in the agreement about furnishing the secured loan, to be able to handle the encumbered property the lender must file a special public notice in order to “perfect” their security interest.
In this blog post, we will describe how to properly file the UCC-1 form.
Who needs a UCC-1 Form?
A UCC-1 Form, which is the short name for Uniform Commercial Code-1 Financial Statement, is designed for filling by lenders (or creditors) who want to give notice of their interest in the personal property of a debtor. These parties are identified in the agreement recording the credit.
What is the Statement Form UCC-1 for?
This form needs to be filed in order to legally establish a security interest in the defined personal property (i.e. collateral) and to claim priority if a debtor defaults or goes bankrupt. It also outlines the terms of the agreement creating the debt.
Is the Financial Statement UCC-1 Form accompanied by other forms?
It is not necessary to accompany the Financial Statement by any other forms or supporting documents. However, there is one exception: in order to add multiple debtors or secured parties, it is necessary to fill out and attach the Additional Party Form UCC-3.
When is Form UCC-1, Financial Statement due?
The UCC-1 statement does not have a particular deadline for submission.
How do I fill out the UCC1 Form online?
The standard fillable financial statement form must cover the following items:
- Debtor (name, address)
- Secured Party (name, address)
The form contains instruction on the second page, that should be looked through before completing the UCC-1 form.
Where do I send the Form UCC-1?
After the completion, the fillable UCC-1 should be sent to the local Secretary of State’s office.