What €™s Their Debt? Found Out With UCC Filings

UCC filings are documents filed related to the UCC. The Uniform Commercial Code (UCC) is a uniform act dealing with sales and commercial transactions for all states in the United States. The subjects of the UCC include sales of goods, leases of goods, negotiable instruments, bank deposits, fund transfers between banks, letters of credit, auctions and liquidations of assets, warehouse receipts, documents of title, investment securities, and secured transactions. UCC filings, however, generally deal with secured transactions related to personal property. Something is considered personal property if it is movable, like furniture, inventory, or equipment.

The rules governing secured transaction are found in Article 9 of the UCC. Secured transactions are loans whereby the lender receives a security interest in collateral (personal property) owned by the borrower. For example, to obtain a loan, a store owner may use the store’s inventory as collateral. In secured transactions, if a borrower does not pay back the loan, then the lender has the right to foreclose or repossess the collateral that was used to secure the loan.

UCC filings related to secured transaction documents are usually called Financing Statements. This document lists the debtors name and contact information, the lenders name and contact information, and the collateral.

Financing Statements are public records. The purpose of filing a Financing Statement is to provide notice to other creditors about which assets are already being used as collateral. If you are considering, or in the process of embarking into a debtor/creditor relationship, UCC filings are an important tool to determine what type of individual, or business you may be getting involved with.

In most states, UCC filing records can be found through the Secretary of State. However, in some states, like Washington, UCC filings are managed by the Department of Licensing. Many offices responsible for UCC filings provide online access to review, download, or order the UCC filings. A fee is usually required to access full documents.

To locate the UCC filing office in your state, visit the Free Public Records Directory and click on your state of interest.ï ¿ ½

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