Also known as: UCC1 · U.C.C.-1 · UCC 1 · financing statement · UCC financing statement
Written by attorneys · grounded in primary & secondary sources — see below
A standard financing statement form filed to perfect a security interest in personal property under Article 9 of the Uniform Commercial Code. The filing provides public notice of the secured party's interest in the collateral and establishes priority against third parties such as lien creditors and subsequent purchasers.
Upland Industries borrows funds from Union Steel and grants a security interest in its manufacturing equipment. Union Steel prepares and files a UCC-1 financing statement listing the equipment as collateral in the appropriate state office. The filing perfects the security interest, giving Union Steel priority over later judgment creditors who attempt to levy on the same equipment.
Usman Uddin purchases a delivery truck from Uptown Apparel on credit and grants a security interest in the vehicle. Uptown Apparel attempts to perfect by filing a UCC-1 financing statement in the central filing office. Because state law requires notation of the security interest on the certificate of title, the UCC-1 filing is neither necessary nor effective to perfect the interest against third parties.
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Uma Upadhyay buys a used vehicle from Umeko Uchida and later discovers a defect that causes an accident. Umeko had previously granted a security interest in the vehicle to a lender that filed a UCC-1. The financing statement remains effective after the sale, allowing the lender to enforce its interest against the vehicle even though the buyer had no actual knowledge of the filing.
The statement must include the debtor's name, the secured party's name or representative, and an indication of the collateral covered. Accurate debtor identification is essential because filings are indexed and searched by debtor name.
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Filing is unnecessary when another statute or treaty governs perfection, such as certificate-of-title laws for vehicles or federal statutes that preempt the general filing requirement.
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A properly filed UCC-1 provides constructive notice to third parties who search the public records under the debtor's correct legal name. An incorrect debtor name renders the filing seriously misleading and ineffective.
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…to establish a standard for determining defectiveness which is inconsistent with the present law in this area ( see generally , UCC 1-103). Accordingly, I dissent. Following certification of questions by the United States Court of Appeals for the Second Circuit and acceptance of the questions by this Court pursuant to…