7Newswire
14 Mar 2023, 17:56 GMT+10
Are you wondering how you'll protect your company and the assets you've worked hard to earn? You might hear about things like UCC filings but have no idea what they are or why you might need one.
Fortunately, understanding what a UCC filing is is quite easy. Once you understand the basics of UCC filings, you'll know if you need one for your business.
Hopefully, our guide will help you understand this type of filing so you can decide whether you need one for your business.
Benefits of UCC Filing
The UCC filing, which stands for Uniform Commercial Code, is a legal document that is filed in public records. This is to give a secured party a lien or security interest in a certain debtor's personal property and assets. The benefits of UCC filings are many for both lenders and borrowers.
By filing a UCC-1, lenders can be assured that their loan is secure and prevent other creditors from taking away what the lender has already acquired. The borrower also benefits from the filing, as the loan can be secured in the form of collateral up to the value of what has been loaned out.
Under a UCC filing, both lenders and borrowers are protected from further liabilities resulting from the loan. Furthermore, lenders enjoy priority, which is recognized as all secured debts are first paid before unsecured creditors. Finally, a UCC filing can give evidence and credibility when a dispute arises.
Types of UCC filings
There are several different types of UCC filings. A UCC-1 is the most common filing, used when the debtor provides their personal property as collateral when taking out a loan.
A UCC-3 is used to amend or terminate an existing UCC filing, and a UCC-11 is a search authorization form giving a legal organization the right to search public records about a UCC filing. UCC 3 termination is an official document that is filed to inform the public that a previously filed UCC financing statement (UCC-1), which was used to secure debt, is no longer in effect.
When a UCC Termination form is filed, it cancels the UCC-1 statement and removes the secured debt from the public record. This can be done when the loan is refinanced, paid off, or when a party voluntarily elects to terminate the security interest.
Cost of Filing
Depending on the state, these costs can vary from a few hundred dollars to over a thousand. Additionally, the filing can be expedited for an added fee.
Furthermore, in some cases, the business owner or consumer filing the lien may have to pay for a search of public records to verify that the UCC lien is valid. All in all, the cost of filing a UCC lien will depend on the individual state, the complexity of the lien, and any added fees.
Start Protecting Your Investments Today
A UCC filing is a critical filing that provides lenders and business owners with legal protection for their investments. UCC filings are an important tool that helps businesses thrive and ensures that lenders stay secure.
Business owners should look into the options available to them and consider speaking to a UCC attorney to decide what their options are. Start protecting your investments today with a UCC filing.
If you find this article helpful, check out more of our content.Get a daily dose of Oakland Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Oakland Times.
More InformationNEW YORK, New York - U.S. stocks surged on Monday following news that the Trump administration had agreed to a 90-day reduction of...
WASHINGTON, D.C.: The Republican-led U.S. House of Representatives has passed a bill to rename the Gulf of Mexico as the Gulf of America,...
AUSTIN, Texas: Six people in a small Texas county have been charged with serious crimes as part of a growing election investigation...
CHICAGO, Illinois: All U.S. airlines are feeling the impact of falling travel demand caused by President Trump's trade war. But low-cost...
WASHINGTON, D.C.: This week, U.S. President Donald Trump signed an executive order to speed up the approval of drug manufacturing plants...
Pope Leo XIV's father, Louis Marius Prevost, served in the U.S. Navy during World War II. Prevost Snr. was born on July 28, 1920,...
Gaza Faces Imminent Famine as Aid Blockade Enters 70th Day, UN Warns The entire population of Gaza is now at critical risk of famine,...
WASHINGTON, D.C.: The Republican-led U.S. House of Representatives has passed a bill to rename the Gulf of Mexico as the Gulf of America,...
HARRISBURG, Pennsylvania: People in Pennsylvania who are 21 or older could soon be allowed to legally buy and use marijuana. The state...
AUSTIN, Texas: Six people in a small Texas county have been charged with serious crimes as part of a growing election investigation...
WASHINGTON, D.C.: The Federal Aviation Administration (FAA) says it is taking urgent steps to fix problems that have caused hundreds...
WASHINGTON, D.C.: This week, U.S. Defense Secretary Pete Hegseth ordered a 20 percent cut in the number of four-star generals and admirals,...