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Typical collateral For example, if you take out a loan to buy new machinery, the lender might file a UCC-1 lien and claim that new machinery as collateral on the loan. You would, of course, work with your lender to designate what the collateral will be before you sign any documentation committing to the loan.

Uniform Commercial Code1 (UCC1) statement is a legal notice filed by creditors in an effort to publicly declare their right to seize assets of debtors who default on loans. UCC1 notices are typically printed in local newspapers, in an effort to publicly express a lender's intent to seize collateralized assets.

What does it look like? A UCC-1 financing statement contains three important pieces of information: Parts 1 and 2 contain the personal and contact information of the borrower. Part 3 contains the personal and contact information of the secured party?otherwise known as the creditor.

A UCC financing statement ? also called a UCC-1 financing statement or a UCC-1 filing ? is a legal form that allows a lender to announce a lien on an asset to secure a loan. By filing the UCC financing statement, the lender is giving notice that it has an interest in the property listed in the filing.

About the UCC Division These liens are perfected by filing a UCC-1 Financing Statement showing the name and address of the debtor and the secured party along with a description of the collateral. These financing statements are effective for five years and may be continued for an additional five years.

A creditor files a UCC-1 to provide notice to interested parties that he or she has a security interest in a debtor's personal property. This personal property is being used as collateral in some type of secured transaction, usually a loan or a lease.