Extract Data From Legal South Dakota UCC Forms For Free

Ask the lender to terminate the lien upon payoff. A good rule of thumb is to request that your lender file a UCC-3 form with your secretary of state as soon as possible after you pay off your loan. The UCC-3 will terminate the lien on your company's assets (or assets) and remove the UCC-1 filing.

A Uniform Commercial Code filing, also known as a UCC filing, is a document that lenders use to establish their legal right to assets that a borrower uses to secure a loan. This notice allows the lender to seize the borrower's collateral in the case of default.

Uniform Commercial Code (UCC) filings allow creditors to notify other creditors about a debtor's assets used as collateral for a secured transaction. UCC liens filed with Secretary of State offices act as a public notice by the "creditor" of the creditor's interest in the property.

If you have not filed a UCC-1, then you are considered unsecured, and as such, you are placed in the ?back of the line,? behind the secured creditors. Secured creditors are taken care of first in the division of assets.

You can find UCC (Uniform Commercial Code) data yourself on the Secretary of State website for each state. Click on the link and search by a debtor's (buyer's) personal or business name. To view the record, click on the file number.

If the IRS wants to file a statewide tax lien against a taxpayer's personal property, the document evidencing the lien will be filed with the secretary of state's office. Most states (if not all) index the IRS liens along with the UCC-1 financing statement liens.