/uh-MEND-muhnt (kuh-LAT-uh-ruhl chaynj)/·procedural term
Also known as:amendment · amendments · amend · amended · amending · collateral amendment · collateral change
Written by attorneys · grounded in primary & secondary sources — see below
A filing used to modify the description of collateral in a financing statement by adding, deleting, or restating the collateral covered or by assigning the secured party's interest.
Sources & Authorities· 40 primary sources
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Cases
Statutes
How it applies
Common Examples
6
Adding Equipment to Collateral
Andre Antoine granted a security interest in inventory to secure a loan. After purchasing new machinery, he authorized the secured party to file an amendment adding the equipment to the collateral description so that the financing statement would cover it.
Deleting Specific Inventory
Azure Solutions held a security interest in all of Adrian Aguilar's accounts receivable. When one large account was paid off, the secured party filed an amendment deleting that account from the collateral description to reflect the current assets subject to the lien.
Restating Entire Collateral
Alpine Mining's original financing statement listed only vehicles. After expanding operations, the parties filed an amendment that restated the collateral description to include all equipment and after-acquired property, ensuring comprehensive coverage.
Aurora Biotech assigned its security interest in laboratory equipment to a new lender. The assignee filed an amendment describing the collateral assigned so that the financing statement would reflect the transfer of the secured party's rights.
Correcting Collateral Description
Arcadia Retail discovered that its financing statement incorrectly described the collateral as "inventory" rather than "equipment." The secured party filed an amendment restating the collateral description to the accurate category.
Adding After-Acquired Property
Adam Anderson granted a security interest in existing farm equipment. When he later acquired additional tractors, the secured party filed an amendment adding the new items to the collateral description to maintain the lien's effectiveness.
Common questions
Frequently Asked
2
What does an amendment for collateral change accomplish?+
It updates the financing statement to reflect additions, deletions, or restatements of the collateral subject to the security interest.
Supporting sources
When must a secured party file a collateral change amendment?+
A secured party files the amendment when the parties agree to modify the collateral covered by an existing financing statement or when an assignment of the security interest occurs.
Supporting sources
407 U.S. 67 (1972)Property
…of constitutional law. The right to a prior hearing has long been recognized by this Court under the Fourteenth and Fifth Amendments. Although the Court has held that due process tolerates variances in the form of a hearing "appropriate to the nature of the case," Mullane v. Central Hanover Tr. Co. , 339 U. S. 306,…