Use Signature Notifications For Word UCC Templates For Free

The Uniform Commercial Code is a standardized set of laws that govern business transactions and financial contracts. This code has 9 separate articles, of which Article 9 deals with secured transactions; in other words, transactions in which a borrower agrees to offer personal property for security against a debt.

Essentially, a UCC-1 can be described as a financing statement. In fact, it is sometimes called a UCC financing statement. 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.

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.

The UCC filing establishes a lien against the collateral the borrower uses to secure the loan ? giving the lender the right to claim that collateral as repayment in the case of default. However, in many cases, the terms UCC lien and UCC filing are used interchangeably.

In theory, anyone can file a UCC-1 against anyone else. To protect both secured creditors and debtors, Article 9 has strict requirements that must be met for a filed UCC-1 to be effective. One of those requirements is that the financing statement must be authorized by the debtor.

1 form establishes a creditor's claim on personal property through a public notice, while a lien grants the creditor specific rights over the property as security for a debt.