This Uniform Commercial Code form, a UCC3-AD - Financing Statement - Tennessee, is for use in the documentation of personal property as collateral for a loan, and related matters.
The Memphis Tennessee UCC3-AD — Financing Statement is a legal document used to assert a security interest in personal property as collateral for a loan or credit transaction. This statement complies with the requirements outlined in the Uniform Commercial Code (UCC) Article 9 and is filed with the Tennessee Secretary of State by the secured party. The UCC3-AD financing statement typically contains several key elements. Firstly, it includes the names and addresses of both the debtor (borrower) and the secured party (lender). This information ensures accurate identification and contact between the involved parties. Additionally, the financing statement specifies a description of the collateral being used to secure the loan. This collateral can include various types of personal property such as inventory, equipment, accounts receivable, intellectual property, or even fixtures attached to real property. It is crucial to describe the collateral adequately, using specific keywords that accurately represent the assets involved. Furthermore, the financing statement provides the duration or term of the security interest. It can be indicated as a specific date or as a period of time, often calculated in years. If the security interest is meant to continue indefinitely until terminated or released, this information is also included. In Memphis, Tennessee, there may not be different types of UCC3-AD financing statements but rather variations based on the nature of the transaction or type of collateral. For instance, some transactions might require additional documents or specific clauses to be attached to the financing statement. It is important to note that filing a UCC3-AD financing statement is crucial to establish priority among creditors. The filing creates a public record, notifying other potential creditors about the lender's claim on the debtor's collateral. This allows for transparency and protects the lender's interest in case of default or bankruptcy by the debtor. To summarize, the Memphis Tennessee UCC3-AD — Financing Statement is a legal document used to create a security interest in personal property as collateral for a loan. It contains the identifying information of the parties involved, a detailed description of the collateral, and the duration of the security interest. Properly filing this document provides transparency and establishes priority rights among creditors in Memphis, Tennessee.
