This Uniform Commercial Code form, a UCC3-AD - Financing Statement - Texas, is for use in the documentation of personal property as collateral for a loan, and related matters.
The UCC3-AD Financing Statement is a legal document used in the state of Texas, specifically in Houston, to provide public notice of a security interest in personal property. This statement is filed with the County Clerk's Office in Houston and is governed by the Uniform Commercial Code (UCC) Article 9. The purpose of the UCC3-AD Financing Statement is to establish the priority of a creditor's claim on the debtor's collateral. It serves as evidence that a debtor has granted a security interest in their personal property as collateral for a loan or other financial obligation. By filing this statement, creditors protect their rights to the collateral in the event of default or bankruptcy by the debtor. There are several types of UCC3-AD Financing Statements that can be filed in Houston, depending on the specific circumstances: 1. Original Financing Statement: This type of statement is filed when there is a newly created security interest. It establishes the priority of the creditor's claim against the debtor's collateral. 2. Amendment Financing Statement: When there is a need to make changes, corrections, or additions to the original financing statement, an amendment financing statement is filed. This ensures that the public record reflects the accurate and updated information about the security interest. 3. Continuation Financing Statement: This type of statement is filed to extend the effectiveness of a previously filed financing statement. The UCC imposes a five-year expiration period on financing statements, so a continuation statement must be filed before the initial statement expires to maintain the creditor's priority. 4. Termination Financing Statement: Once a debt has been fully repaid, released, or otherwise satisfied, a termination financing statement is filed to remove the registered security interest from the public record. This ensures that the debtor's collateral is no longer encumbered and can be freely transferred or used in other transactions. It is important to note that while the UCC3-AD Financing Statement is specific to the state of Texas, it follows a standardized format and principles established by the Uniform Commercial Code, which governs commercial transactions in the United States. Properly completing and filing this statement is crucial for both creditors and debtors to protect their interests and maintain the integrity of commercial transactions in Houston, Texas.
