Learn something new every day
More Info... by email
A Uniform Commercial Code Form 1 (UCC 1) is a formal agreement in the U.S. to use personal property as collateral for a loan. The general guidelines for a UCC 1 filing are that you provide some basic information about yourself and your business, as well as that of the person whose collateral you hold as security for the loan you provided to him. You will also need to provide in the filing information about anyone to whom you have transferred all or part of your right to repayment of the loan.
The name of the debtor is required on the UCC 1 filing form. You should list the full name of every person who is liable to you for the debt. The debtor can also be a corporation, organization, partnership, or any other kind of business entity. Use the name from any available legal documents that establish the identity of the particular entity, such as articles of incorporation and certificates of formation. If the business name contains a legal designation, such as “LLP,” for limited liability partnership, include that in the name, too.
You will also need to provide in your filing the complete address for each person, company or organization responsible for the debt to you. The list can be any combination of names and entities, as long as all names are included. As the secured party — the one who is holding the collateral and to whom the debt is owed — your full name is also required in the UCC 1 filing. This includes any business name you have. The names of any other people, businesses, or organizations involved with you in the financial transaction should also be listed.
A description of whatever constitutes the collateral you hold should be listed in your filing. Collateral can be many things. It is important that the items are identified as accurately as possible. Your description is part of the notice given to others of the nature and identity of the collateral you hold. If possible, include things such as serial and model numbers.
You will also need to list the names of any person to whom you have assigned or given some or all of your right to collect the debt; this person is known as an assignee. This can be more than one person, a business, or other entity. The same information that you provided about the debtor and yourself must be provided about any assignees.
Once a UCC 1 filing is complete, it can be extended or renewed prior to its expiration, which is generally five years. You can also add or create an assignment of rights, make updates, or terminate the original filing. This is done by submitting a UCC 3 statement referring back to the number given to your original UCC 1 filing. Most state governments will have online UCC forms that can be filed electronically. There are also many business organizations that have Internet sites with tips about UCC forms and filings.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!