what are ucc filings

A UCC filing, or Uniform Commercial Code filing, is a legal document that lenders use to establish their legal right to assets that a borrower uses to secure a loan. UCC filings allow creditors to notify other creditors about a debtors assets used as collateral for a secured transaction. When a lender files a UCC lien, it gives notice to other lenders of its interest in a debtor's property. UCC liens are typically filed using a UCC financing statement, also called the UCC-1 financing statement. The UCC-1 financing statement is a legal form that a creditor files to give notice that it has or might have an interest in the personal or business property of a debtor. Filing a UCC lien is a common practice among lenders when they issue small-business loans. UCC filings can cover a specific piece of collateral, or lenders can file a blanket lien, which applies to all of a borrower's assets. UCC filings act as a public notice by the "creditor" of the creditor's interest in the property.