Are UCC filings state specific?
Are UCC filings state specific?
Although Article 9 was intended to make this process uniform, UCC filing rules can vary in each state. That is ordinarily the law of the state where the debtor is located under UCC § 9-307. A rule of thumb when filing a UCC record is to file at the central filing office of the state where the debtor is located.
What is a UCC filing in California?
A UCC filing is a legal notice a lender files with the secretary of state when they have a security interest against one of your assets. It gives notice that the lender has an interest, or lien, against the asset being used by you to secure the financing. The term “UCC filing” comes from the uniform commercial code.
What are the different types of UCC filings?
There are two common types of UCC filings: a specific collateral lien and a blanket lien. A specific collateral lien gives the lender rights to a specific business asset like a piece of equipment. A blanket lien gives the lender rights to all business assets.
Where are UCC filings filed?
state’s secretary of state office
They’re usually filed by lenders with the debtor’s state’s secretary of state office when a loan is first originated. If the collateral is tangible property, such as equipment, the lender may also file the UCC lien with the county recorder’s office in the county where the property is located.
What is the difference between a UCC-1 and a UCC-3?
Form UCC3 is used to amend (make changes to) a UCC1 filing. However, it is important to note that for a UCC1 filing a termination is only an amendment and that the UCC1 filing may be amended further, even after a termination has been filed. Box 3 – Continuation – A UCC1 filing is good for five years.
Who files a UCC-3?
When the debtor has satisfied all amounts owed to the lender, a UCC-3 termination statement (now called a UCC termination statement) is routinely filed to terminate the security interest perfected by the UCC-1 financing statement.
What is the difference between a UCC 1 and a UCC-3?
How does a UCC lien work?
A UCC lien is a claim against your business assets under the U.S. Uniform Commercial Code. If you borrow money, a UCC filing simply lets the lender establish a priority claim on your assets. If your company goes belly up, the lien makes it easier for the lender to collect its due.