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 Waco Texas UCC3-AD — Financing Statement is a legal document filed to publicly declare a security interest in personal property as collateral for a loan. It is an essential part of the Uniform Commercial Code (UCC) filing system that governs commercial transactions in Waco, Texas. A Financing Statement specifies the name of the debtor and the secured party, describing the collateral in which the security interest is claimed. It provides important information to potential creditors and buyers, ensuring transparency and preventing conflicting claims over the same assets. There are several types of Waco Texas UCC3-AD — Financing Statements that serve distinct purposes: 1. Initial Financing Statement: When a debtor takes a loan and provides collateral to the lender, an Initial Financing Statement is filed. This document establishes the lender's priority in case of default or bankruptcy and alerts other potential creditors of an existing security interest. 2. Amendment Financing Statement: If there are any changes to the original Financing Statement, such as a modification in collateral description or secured party information, an Amendment Financing Statement is filed. This ensures that the public record accurately reflects the revised details of the security interest. 3. Termination Financing Statement: Once a loan is fully paid off or the security agreement is terminated, a Termination Financing Statement is filed to remove the lien or security interest from the public record. This action is crucial to maintain clear ownership of the property and prevent any confusion or disputes. 4. Continuation Financing Statement: In cases where a security interest is set to expire, typically within five years of the original filing, a Continuation Financing Statement can be filed to extend the duration of the security interest. This action ensures that the information remains current and maintains the secured party's priority. 5. Assignment Financing Statement: When a secured party transfers their interest in the collateral to another party, an Assignment Financing Statement is filed to convey the change in ownership. This document notifies other creditors and ensures a smooth transition of rights and obligations between the parties involved. In summary, the Waco Texas UCC3-AD — Financing Statement is a vital legal document used to establish and protect the rights of a creditor in personal property used as collateral. Through various types of Financing Statements, lenders can effectively communicate their claims and maintain accurate records of security interests.
