UCC-1 financing statement - Wikipedia, the free encyclopedia

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** UCC-1 financing statement **

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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 or
may have an interest in the personal property of a debtor (a person who
owes a debt to the creditor as typically specified in the agreement
creating the debt). This form is filed in order to "perfect" a creditor's
security interest by giving public notice that there is a right to take
possession of and sell certain assets for repayment of a specific debt with
a certain priority. Such notices of sale are often found in the local
newspapers. Once the form has been filed, the creditor establishes a
relative priority with other creditors of the debtor.^[1] This process is
also called "perfecting the security interest" in the property, and this
type of loan is a secured loan.^[2] A financing statement may also be filed
in the real estate records by a lessor of fixtures to establish the
priority of the lessor's rights against a holder of a mortgage or other
lien on the real property. The creditor's rights against the debtor and the
lessor's rights against the lessee are based on the credit documents and
the lease, respectively, and not the financing statement.

Pursuant to the standards set forth in the UCC, the financing statement
need only contain three pieces of information:

1. the debtor's name and address
2. the creditor's name and


Source: en.wikipedia.org/wiki/UCC-1_financing_statement


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