Contracts/UCC-1 financing statement: Difference between revisions
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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 an interest in the personal property of a delinquent [[debtor]] (a person who has not paid back their debt as specified in the agreement creating the debt).<ref>http://law.justia.com/us/cfr/title36/36-3.0.8.1.9.1.1.1.html</ref> This form is filed in order to "perfect" a creditor's [[security interest]] by giving public notice that there is a desire to take possession of certain assets for repayment of a specific debt. Such notices are often found in the local newspapers. Once the form has been filed the creditor may move forward in the process of appropriating perfected assets of a debtor that are of equal value to the debt owed.<ref>http://www.findlegalforms.com/articles/form-encyclopedia/what-is-a-ucc1-financing-statement</ref> This process is also called "perfecting the security interest" in the property, and this type of loan is a [[secured loan]].<ref>http://biztaxlaw.about.com/od/glossaryu/g/ucc1statement.htm</ref> | 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 an interest in the personal property of a delinquent [[debtor]] (a person who has not paid back their debt as specified in the agreement creating the debt).<ref>http://law.justia.com/us/cfr/title36/36-3.0.8.1.9.1.1.1.html</ref> This form is filed in order to "perfect" a creditor's [[security interest]] by giving public notice that there is a desire to take possession of certain assets for repayment of a specific debt. Such notices are often found in the local newspapers. Once the form has been filed the creditor may move forward in the process of appropriating perfected assets of a debtor that are of equal value to the debt owed.<ref>http://www.findlegalforms.com/articles/form-encyclopedia/what-is-a-ucc1-financing-statement</ref> This process is also called "perfecting the security interest" in the property, and this type of loan is a [[secured loan]].<ref>http://biztaxlaw.about.com/od/glossaryu/g/ucc1statement.htm</ref> | ||
Revision as of 18:03, April 11, 2009
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 an interest in the personal property of a delinquent debtor (a person who has not paid back their debt as specified in the agreement creating the debt).[1] This form is filed in order to "perfect" a creditor's security interest by giving public notice that there is a desire to take possession of certain assets for repayment of a specific debt. Such notices are often found in the local newspapers. Once the form has been filed the creditor may move forward in the process of appropriating perfected assets of a debtor that are of equal value to the debt owed.[2] This process is also called "perfecting the security interest" in the property, and this type of loan is a secured loan.[3]
The filing creates a lien against the property, so the borrower may not dispose of the property without paying off the debt.
