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:
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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.
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It contains three basic pieces of information:
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The name of the person or entity receiving the funding (the debtor)
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The name of the lender (the secured party)
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The collateral (the property pledged by the debtor to provide security for the loan).
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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.