A UCC 1 is a formal agreement in the US to use personal property as collateral for a loan. The form requires basic information about the debtor, the collateral, and any assignees. It can be extended or renewed before it expires, and updates can be made with a UCC 3 statement.
A Uniform Commercial Code Form 1 (UCC 1) is a formal agreement in the United States to use personal property as collateral for a loan. The general guidelines for a UCC 1 deposit are that you provide some basic information about yourself and your business, as well as that of the person whose collateral you hold as security for the loan you provided to them. You will also need to provide information in the filing about anyone to whom you have transferred all or part of your right to repay the loan.
The debtor’s name is required on the UCC filing form 1. You should list the full name of each person who is liable to you for the debt. The debtor can also be a company, organization, partnership or any other type of business entity. Use the name from any available legal documents that establish the identity of the particular entity, such as the articles of association and certificates of incorporation. If the business name contains a legal designation, such as “LLP,” for limited liability company, include that in the name as well.
You will also need to provide in your filing the full address of any person, business or organization liable for any debt owed to you. The list can be any combination of names and entities, as long as all names are included. As the secured party – the one who holds the collateral and to whom the debt is owed – your full name is also required in the UCC 1 filing. This includes any trade names you have. The names of other people, companies or organizations involved with you in the financial transaction should also be listed.
A description of what constitutes the collateral you hold should be listed on your filing. Warranty can be many things. It is important that items are identified as accurately as possible. Your description forms part of the notice given to others of the nature and identity of the collateral you hold. If possible, include things like serial and model numbers.
You shall also list the names of any persons to whom you have assigned or given any or all of your right to collect the debt; this person is known as the assignee. This can be more than one person, business or other entity. The same information you provided about the debtor and yourself must be provided about any assignees.
Once a UCC 1 filing is complete, it can be extended or renewed before it expires, which is generally five years. You can also add or create a rights assignment, make updates, or terminate the original repository. This is done by submitting a UCC 3 statement referencing the number given to your original UCC 1 filing. Most state governments will have online UCC forms that can be filed electronically. There are also many business organizations that have internet sites with tips on UCC forms and documents.
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