How to Fill Out a UCC Financial Statement as a Secured Creditor

A lender with a secured interest in property the borrower uses as collateral files form UCC-1 with the Secretary of State Office of the state in which the borrower has a business location. The UCC-1 financing statement serves public notice of the lender's secured interest in the borrower's personal property. The first individual who files the UCC-1 form against particular collateral has a priority claim against that collateral if additional lenders also have a secured interest in the same property.

Search for the borrower's business locations. Retrieve the business name, location and entity principals from the borrower’s business information documents and credit agreement. Use this information to perform a business search on the website of the Secretary of State for the states in which the borrower appears to be doing business. These locations are the jurisdictions in which the UCC-1 form should be filed.

File the UCC-1 with the Secretary of State of the state (or states) in which the borrower has business locations. Doing so will secure your interest in the borrower's personal property that is used as collateral.

Search the state's database to locate any additional UCC-1 forms that may have been filed that use the identical property as collateral. The first lender who files the UCC-1 form has the priority claim against the specified collateral in the event of loan default or the borrower's bankruptcy.

Refer to the UCC-1 filing guidance provided by the individual state's website and download and complete the UCC-1 form. Contact the state's Secretary of State Office, if necessary, to obtain additional information regarding filing the form.

Complete fields in the UCC-1 form that require identifying information about the debtor. Rely on business formation documents to obtain the debtor's exact legal name, address and organization number. Alternatively, information documented in a birth certificate or driver's license is used to identify individual debtors.

Record lender information on the UCC-1 form. This information refers to the business or individual who will rely on the UCC-1 form to secure an interest in the borrower's property that is used as collateral. The required information will include your name and address.

Document the assets of the business that serve as collateral for the loan agreement. A review of UCC Article 9 will provide guidance in how to document the assets. In turn, the credit agreement will either itemize the assets in which a lender has an interest or state that the lien is for all assets. These are the assets to be specified in the UCC-1.

File the completed UCC-1 form online, by mail or in person with your state's Secretary of State Office. It is probably a good idea to speak to an attorney before filing the form. In addition, third-party service of process companies are available to review and submit the forms for you.

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About the Author

Billie Nordmeyer works as a consultant advising small businesses and Fortune 500 companies on performance improvement initiatives, as well as SAP software selection and implementation. During her career, she has published business and technology-based articles and texts. Nordmeyer holds a Bachelor of Science in accounting, a Master of Arts in international management and a Master of Business Administration in finance.