UCC Filing

Definition

A UCC lien is a consensual lien that is governed by Article 9 of the Uniform Commercial Code.  While each state adopted its own version of Article 9, the good news is that all of the states have adopted a nearly identical version of the statute. 

 

There are two primary types of filings that are made under Article 9:

  • The first type of filing is the initial financing statement (UCC-1), which is filed by the party lending money or extending credit to a person or business.

    • It contains three basic pieces of information: 

      • The name of the person or entity receiving the funding (the debtor)

      • The name of the lender (the secured party)

      • The collateral (the property pledged by the debtor to provide security for the loan).

  • The second type of filing is the amendment filing (UCC-3).   A UCC-3 is filed after a UCC-1 is filed, and it is used whenever changes are made to the information, or when a secured party desires to extend the life of the UCC-1 or terminate its interest in the secured collateral.