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People also ask
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What happens if you don't file a UCC-1?
A UCC financing statement — also called a UCC-1 financing statement or a UCC-1 filing — is a legal form that allows a lender to announce a lien on an asset to secure a loan. By filing the UCC financing statement, the lender is giving notice that it has an interest in the property listed in the filing.
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How to get a UCC-1 form?
A PDF version of the UCC-1 form typically is available on the website of the state's Secretary of State office. Download the form for your state. Although these forms are for the most part universal, some states have additional fields or requirements.
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What is the effect of UCC filing?
The UCC-1 protects the interests of the lender if a borrower defaults or files for bankruptcy, in which case those asset(s) would be foreclosed on, seized or sold off. The filing will generally give the creditor priority over other creditors.
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What is the purpose of the UCC-1 filing?
A creditor files a UCC-1 to provide notice to interested parties that he or she has a security interest in a debtor's personal property. This personal property is being used as collateral in some type of secured transaction, usually a loan or a lease.
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What happens if you don't file a UCC-1?
If you don't file the UCC-1 financing statement on time, you can lose priority should the debtor default or file bankruptcy. UCC-1 filings are often subject to a “first to file” rule, so timing is critical.
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What does filing a UCC-1 do for you?
If you don't file the UCC-1 financing statement on time, you can lose priority should the debtor default or file bankruptcy. UCC-1 filings are often subject to a “first to file” rule, so timing is critical.
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