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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 [[creditors]] file when giving notice that they have an interest in the personal property of a delinquent debtor (a person who has not paid back his/her debt as specified in a prior agreement<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 payments are often found in the local newspapers. Once the form has been filed the creditor may move forward in the process of appropriating the “perfected” assets of a debtor that is of equal value to the debt owed.<ref>http://www.findlegalforms.com/articles/form-encyclopedia/what-is-a-ucc1-financing-statement</ref> | A '''UCC-1 financing statement''' (an abbreviation for Uniform Commercial Code-1) is a legal form that [[creditors]] file when giving notice that they have an interest in the personal property of a delinquent debtor (a person who has not paid back his/her debt as specified in a prior agreement<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 payments are often found in the local newspapers. Once the form has been filed the creditor may move forward in the process of appropriating the “perfected” assets of a debtor that is 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> | |||
The filing creates a [[lien]] against the property, so the borrower may not dispose of the property without paying off the debt. | |||
== References == | == References == | ||
{{reflist}} | {{reflist}} | ||
Revision as of 19:14, April 10, 2009
Template:Underconstruction A UCC-1 financing statement (an abbreviation for Uniform Commercial Code-1) is a legal form that creditors file when giving notice that they have an interest in the personal property of a delinquent debtor (a person who has not paid back his/her debt as specified in a prior agreement[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 payments are often found in the local newspapers. Once the form has been filed the creditor may move forward in the process of appropriating the “perfected” assets of a debtor that is 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.
