Living in the World of Uniform Commercial Code can be perplexing. This blog is the start of a series to start the discussion of UCC-1 filings, 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 timely is very important; as a secured party, you want to make sure the filing is filed before any other to secure your interests.
The question arises: Where do I file? The below chart lists out the most common debtor types:
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 | County/State of place of business |
Organizations with multiple places of business | County/State of chief executive office |
Non-U.S. entity organized in foreign jurisdiction without a notice system | In Washington, D.C. and other applicable jurisdictions |
Individuals | County/State of principal residence |
Stay tuned for the next installment, which will dive deeper into the World of Uniform Commercial Code.
Karen Elliott, Assistant Vice President Client Development