The UCC Filing Guidelines provide instructions for completing UCC forms, including the name of the obligor, secured party, and collateral. Each state requires compliance with these guidelines, and the name must be the exact legal name to avoid confusion. The purpose of filing the UCC is to disclose a security interest to the public. The name of the protected party can be the transferee, and the collateral listing should only include non-extraneous information.
The UCC Filing Guidelines are specific rules for completing and submitting UCC forms to the Secretary of State. They provide instructions on how to complete the sections of the forms dealing with the name of the individual or organization obligor, the name of the secured party and the collateral. The guidelines are commonly derived from Article 9 of the Uniform Commercial Code, and some guidelines are slightly modified to meet the state’s mail and online filing needs. Each state requires individuals and businesses to submit UCC Code Forms 1 or UCC Code Forms 9 that comply with these guidelines, otherwise such forms are often rejected. Forms are provided by the state in which the individual wishes to file a UCC filing, but the International Association of Commercial Administrators (IACA) also offers national forms that are accepted by most states.
The organization or individual name must be the exact full legal name to meet the requirements of the UCC filing guidelines. The reason is that the debtor can be confused with another debt, which will eliminate the effectiveness of the UCC filing. The debtor’s Social Security number is only required for certain types of liens, and therefore confusion can occur among debtors if the name is not filed correctly. The purpose of filing the UCC is for the obligee to disclose a security interest in the obligor’s security to the public. It often has the effect of a lien, although the obligee must execute the lien separately.
The name of the protected party is the legal name of the obligee. It can also be the name of the transferee, which is the individual or organization to which the creditor transfers the security. When a new lender purchases the loan secured by the old title, the transfer of the loan is often referred to as an assignment. The new obligee becomes the assignee and the UCC filing guidelines for the secured portion also apply to the assignee.
One of the most important aspects of the forms is the list of debtor guarantees. Collateral is personal property that the borrower uses to secure the loan and cannot sell, transfer or get rid of because the lender has an interest in it. The UCC collateral filing guidelines for the collateral listing are often straightforward. The debtor should list only collateral and non-extraneous information, and should include a brief description of each item. For example, the creditor should not use that section of the form to list the name and addresses of the assignee for each of the items. Such information is not entered into public records and is often not searchable by the public.
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