A UCC filing is the official notice that lenders use to demonstrate their security interest in a borrower’s assets.
A UCC filing is submitted to the Secretary of State in the state where the borrower is located, regardless of where the creditor is. The lien filing process may vary by state. Some places require a paper filing, while other states have moved to a digital process.What is the impact of a...
What is a UCC filing? A UCC filing, also known as a UCC lien or a UCC-1, is a financing statement which lenders can file against your business with your secretary of state. When you take out a secured loan, the lender may file a lien to protect the asset(s) you committed to secu...
What is a UCC filing? A UCC filing, or UCC lien, is a part of that collection of laws that refers to a kind of temporary claim which a lender may place on certain assets. When you borrow from a lender, they may decide to place a UCC-1 lien on your property and, in exchange, ...
The purpose of a UCC 1 filing is to allow a financier to grab security in interest in the borrower’s assets or property. These items are used as collateral in a loan and may go away if the borrower declares bankruptcy or falls behind on their payments. It’s for the defense of the ...
A UCC filing is a public record signifying that there is an active UCC lien on your business assets. When you take out a small business loan that uses a UCC lien as collateral, your business lender will create a UCC filing with the secretary of state where you live. ...
A UCC-1 filing remains in effect forfive years. If the loan is still active, the lender must file aUCC-3 Filing Statement Amendmentat least six monthsbefore the expiration date to continue the filing or it lapses automatically. When the loan is paid in full, the lender files a UCC-3 Fi...
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While rules vary by state, businesses can ask the lender to immediately remove the lien upon loan repayment by filing a UCC-3 statement. Another option is to visit the local secretary of state’s office, verify that the business has fulfilled the debt in full, and request to have the UCC...