Some Transactions May Require Filing UCC’s in Multiple Locations
When Revised Article 9 (RA9) went into effect back in 2001, it dramatically streamlined the UCC filing process. Prior to RA9, the filing location for UCC Financing Statements was based on the location of the collateral, not the location of the debtor as it is today. As a result, creditors routinely had to file multiple UCC Financing Statements in order to perfect their security interest. There were even so-called dual-filing states that…READ MORE
When is a Terminated UCC Record not Really Terminated?
One of the basic tenets of the Uniform Commercial Code holds that a terminated UCC filing ceases to be effective. Here is a riddle for you though, when is a terminated UCC record not really terminated?
Answer 1: When the UCC record contains more than one secured party of record.
Under the Uniform Commercial Code, when multiple secured parties exist for a single UCC record, a single secured party can act as representative and file a termination…READ MORE
Purpose of Pre-Filing UCC Financing Statements
What is Pre-filing?
In a traditional funding cycle, a lender will order lien searches on potential borrowers at the start of a new deal. Based on the results of those searches (and other measures of creditworthiness) the lender decides whether to fund the applicant. If the lender elects to advance funds, the lender will file a UCC Financing Statement to perfect their security interest and secure a priority position to collect should…READ MORE