what is a ucc filing

A UCC filing, or Uniform Commercial Code filing, is a legal form that a creditor files to give notice that it has or may have an interest in the personal or business property of a debtor. The UCC is a set of laws concerning commercial transactions, such as the sale of goods, secured transactions, and negotiable instruments. UCC filings allow creditors to notify other creditors about a debtors assets used as collateral for a secured transaction. The filing of a UCC financing statement gives notice of a lien against the property so that other lenders or buyers of the personal property will know of the security interest. A UCC filing gives a lender the first-position right to claim a borrower’s collateral in the case of loan default. The UCC-1 financing statement need only contain three pieces of information: the debtor's name and address, the creditor's name and address, and a description of the collateral. UCC filings can impact a business's credit, risk its assets, and/or hinder its ability to get future financing.