This Uniform Commercial Code form, a UCC1-AD - Financing Statement - Texas, is for use in the documentation of personal property as collateral for a loan, and related matters.
Harris Texas UCC1-AD — Financing Statement is a legal document used to publicly declare and secure a financial interest in personal property. It serves as a means for creditors to inform other parties about their claim on specific assets owned by a debtor. This formal filing is instrumental in protecting creditors' rights and establishing priority in case of bankruptcy or default. The Harris Texas UCC1-AD — Financing Statement can be filed by various parties such as financial institutions, lenders, lessors, and sellers who extend credit. By filing this statement with the appropriate county clerk's office, secured parties can establish their priority in securing collateral, whether it be tangible assets like vehicles, equipment, or inventory, or intangible assets like patents, copyrights, or accounts receivable. The contents of the Harris Texas UCC1-AD — Financing Statement typically include: 1. Debtor and Secured Party Information: The statement identifies the parties involved, including the legal names and addresses of both the debtor (borrower) and secured party (creditor). Accurate identification is crucial to ensure the statement's effectiveness. 2. Collateral Description: A detailed description of the collateral being used to secure the debt is required. It should be specific enough to differentiate the assets from others and enable accurate identification. Broad categorical descriptions such as "all assets" or "all personal property" are generally not sufficient. 3. Filing Information: The statement includes details such as the date of filing, the jurisdiction it is filed in (Harris County, Texas), and the document's unique identifying number. This information helps in locating and referencing the document when needed. It is important to note that the term "UCC1-AD" refers to the specific section of the Uniform Commercial Code (UCC) that covers financing statements related to agricultural liens. However, the Harris Texas UCC1-AD — Financing Statement can also apply to general security interests and other types of liens. Different variations of UCC1 Financing Statements in Harris County, Texas, may include UCC1-DB (Debtor Name Amendment), UCC1-AP (Additional Party), UCC1-AD(Additional Debtors), and UCC1-FA (Fixture Filing) among others. The designated code after UCC1 indicates the specific type of amendment or additional information being filed to update or modify the original financing statement. In conclusion, the Harris Texas UCC1-AD — Financing Statement is a critical legal document filed with the county clerk's office to establish the priority of a creditor's claim on a debtor's assets. It ensures transparency and protects the rights of all parties involved in securing financial interests in personal property.
