The Perplexing World of Uniform Commercial Code Demystified! Pt 1: UCC Filings – What are they and where to file?
Posted by Josh Twilley
May 6, 2020
This post was updated on January 25, 2021.
The Uniform Commercial Code (UCC) can be perplexing. This post is the first in our multi-part series exploring UCC-1 filings, specifically what they are, and where to file.
A UCC-1 Financing Statement (an abbreviation for Uniform Commercial Code-1) is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor. For example, if you lend money as part of a loan, or offer credit for the lease or purchase of equipment of any kind, you may file a UCC-1 The UCC-1 protects the creditor’s interest should the debtor default on the loan.
Filing the UCC-1 in a timely manner is very important too. As a secured party, you want to make sure the filing is filed before any other to secure your interests.
This all begs the question: Where do you file? The chart below lists out the most common debtor types and corresponding UCC filing protocols:
|
Debtor Type |
Where to file UCC Financing Statements |
| Registered organizations (Corporation, LLC, LP, etc.) | File at central filing office of state where entity was formed or organized (i.e., Secretary of State) and/or County recording office where principal office is located |
| Organizations with one place of business | File with the county or state of place of business |
| Organizations with multiple places of business | File with the county or state of chief executive office |
| Indian Tribes and Non-U.S. entity organized in foreign jurisdiction without a notice system | File in Washington, D.C. and other applicable jurisdictions |
| Individuals | File in the county or state of principal residence |
Next up, Part II of our UCC series: understanding the “proper” way to complete a UCC-1 Financing Statement.
And as always, information within this post is intended for general information purposes only. Incserv and its employees cannot offer legal or financial advice. Please consult with your legal counsel for assistance in how this information may or may not affect you and your business prior to making any decisions. The above information (and any attachments) should be judged accordingly.