Answers to Common UCC Filing Questions Series: Part Three
UCC
First Corporate Solutions sales representatives and service staff are asked a lot questions about UCC filings. This month, First Corporate Solutions decided to take to the blog to answer some of our most commonly asked questions regarding UCC filings. Each week this month we have been posting 2-3 questions posed by First Corporate Solutions customers and prospects. See here and here for our previous UCC Filing Questions posts.
Here are this week’s questions and answers:
QUESTION: We were recently asked to file a UCC-1 for information purposes only, simply to clarify the relationship between a lessor and lessee. Is this common? Is it recommended?
ANSWER: This is a fairly common practice, in fact the UCC Financing Statement National From includes a section to indicate alternative designations, including the lessee/lessor relationship as well as a non-UCC filing notation. It is always best practice to speak with your legal counsel or risk management department to determine recommended best practices specific to your transaction.
QUESTION: Can I file my UCC on a “dba” name?
ANSWER: You can, but keep in mind that according to the Uniform Commercial Code, filing under a trade name (dba) alone is not sufficient to perfect a security interest. In order to perfect, a secured party must file under the legal name of the debtor; a “dba” name does not constitute a legal name. A secured party may file under both the legal name and the trade name if they wish.
Please refer to our previous blog post, Omit “dba” Notation From UCC Filings, for more information on how best to list debtor names when filing under a legal name and a “dba” name.
Have a question about UCC Filing that you would like to have answered on our blog? Email First Corporate Solutions at info@ficoso.com.