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