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> | ||
Pursuant to the standards set forth in the UCC, the financing statement need only contain three pieces of information: | |||
# the debtor's name and address | |||
# the creditor's name and address | |||
# a description of the collateral, which may be very general | |||
The financing statement is generally filed with the office of the [[state secretary of state]], in whichever state the debtor resides. | |||
The filing creates a [[lien]] against the property, so the borrower may not dispose of the property without paying off the debt. | The filing creates a [[lien]] against the property, so the borrower may not dispose of the property without paying off the debt. | ||
Revision as of 17:12, July 23, 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]
Pursuant to the standards set forth in the UCC, the financing statement need only contain three pieces of information:
- the debtor's name and address
- the creditor's name and address
- a description of the collateral, which may be very general
The financing statement is generally filed with the office of the state secretary of state, in whichever state the debtor resides.
The filing creates a lien against the property, so the borrower may not dispose of the property without paying off the debt.
