Definition & Meaning
The UCC Financing Statement Cooperative Addendum Form, often referred to as the UCC-1 Coop Addendum, is a legal document used in the United States to provide additional information about a secured transaction involving cooperative ownership interests. This form supplements the standard UCC-1 financing statement, which is filed to perfect a security interest in personal property. The cooperative addendum specifically caters to transactions involving cooperatives, ensuring that the rights of the secured party are clearly established and recognized.
In essence, the UCC Financing Statement Cooperative Addendum serves to protect lenders and creditors by detailing the specific assets tied to a cooperative, such as shares in a housing cooperative. This form is crucial for maintaining transparency and security in financial dealings involving cooperative entities.
How to use the UCC Financing Statement Cooperative Addendum
Using the UCC Financing Statement Cooperative Addendum involves several steps to ensure proper filing and compliance. First, identify the need for the addendum in conjunction with a UCC-1 filing. This typically occurs when a lender is securing a loan against cooperative shares or membership interests.
Next, gather necessary information, including:
- Details of the cooperative organization
- Names and addresses of the debtor and secured party
- Description of the collateral, including the specific cooperative shares
Once the information is compiled, fill out the addendum accurately. It is essential to double-check all entries for correctness, as errors can lead to complications in securing the interest. After completing the form, it must be filed with the appropriate state authority, typically the Secretary of State's office, along with any required filing fees.
How to obtain the UCC Financing Statement Cooperative Addendum
The UCC Financing Statement Cooperative Addendum can be obtained through various channels. Most states provide the form online through their Secretary of State's website or the relevant state agency responsible for business filings. It is advisable to visit the official website for the specific state where the cooperative is registered.
Additionally, legal and financial institutions may offer templates or guidance for completing the addendum. If needed, consulting with a legal professional can also help ensure that the form is filled out correctly and complies with state laws.
How to fill out the UCC Financing Statement Cooperative Addendum
Filling out the UCC Financing Statement Cooperative Addendum requires careful attention to detail. Start by entering the name of the cooperative organization and its address. Next, provide the names and addresses of both the debtor and the secured party.
In the collateral section, describe the cooperative shares or interests being secured. It is important to be specific to avoid ambiguity. For example, instead of stating "shares," specify "100 shares in XYZ Cooperative." Ensure all information is accurate and complete.
After filling out the addendum, review it thoroughly for any errors or omissions. Once confirmed, it should be signed by the appropriate parties, if required, before submission.
Key elements of the UCC Financing Statement Cooperative Addendum
Several key elements must be included in the UCC Financing Statement Cooperative Addendum for it to be valid:
- Debtor Information: Full legal name and address of the debtor.
- Secured Party Information: Full legal name and address of the secured party.
- Cooperative Organization Details: Name and address of the cooperative.
- Description of Collateral: Specific details about the shares or interests being secured.
- Signature: Required signatures of the debtor and secured party, if applicable.
Including these elements ensures that the addendum is complete and legally binding, providing the necessary protection for the secured party.
Who typically uses the UCC Financing Statement Cooperative Addendum
The UCC Financing Statement Cooperative Addendum is commonly used by various parties involved in cooperative financing transactions. This includes:
- Lenders and financial institutions seeking to secure loans against cooperative shares.
- Cooperative members who are borrowing against their shares.
- Legal professionals assisting clients in securing financing for cooperative interests.
Understanding the typical users of this form helps clarify its purpose and importance in cooperative financing scenarios.
Legal use of the UCC Financing Statement Cooperative Addendum
The legal use of the UCC Financing Statement Cooperative Addendum is governed by the Uniform Commercial Code (UCC), which provides a framework for secured transactions in personal property. Filing the addendum properly ensures that the secured party's interest is perfected, meaning it is legally enforceable against third parties.
It is essential to comply with state-specific regulations regarding the filing process, as each state may have unique requirements or nuances. Failure to adhere to these legal standards can result in the loss of secured status, making it crucial to understand the legal implications of using the addendum.
Examples of using the UCC Financing Statement Cooperative Addendum
Consider a scenario where a member of a housing cooperative seeks a loan to renovate their unit. The lender requires a UCC Financing Statement Cooperative Addendum to secure the loan against the member's shares in the cooperative. By filing the addendum along with the UCC-1, the lender protects their interest in the collateral.
Another example involves a cooperative that wants to expand its operations and needs financing. The cooperative can use the addendum to secure a loan by detailing the shares owned by its members as collateral. This ensures that the lender has a legal claim to the cooperative's assets in case of default.
