UCC filings or liens are legal forms that a creditor files to give notice that it has an interest in the personal or business property of a debtor. Essentially, UCC lien filings allow a lender to formally lay claim to collateral that a debtor pledges to secure their financing.

What is a UCC-1 fixture filing?

A filing on a fixture is a standard UCC-1 financing statement recorded with a secretary of state. It includes the fixture in the description of the collateral. It’s important to know it doesn’t attach a lien to real estate; you have a subordinate interest to the property owner and other creditors.

How do I remove a UCC-1 lien?

Rules vary by State around releasing a UCC lien after a borrower satisfied the debt. Primarily there are two main ways to remove them. One way is by having the lender file a UCC-3 Financing Statement Amendment. Another way to remove a UCC filing is by swearing an oath of full payment at the secretary of state office.

Can a lender file a UCC-1 lien against you?

When you received your merchant cash advance, your lender prepared and recorded what is referred to as a UCC-1 filing. What is a UCC Filing? A UCC filing, also known as a UCC lien or a UCC-1, is a financing statement which lenders can file against your business with your secretary of state.

When to file a UCC-1 financing statement?

UCC-1 Financing Statements are commonly referred to as simply UCC-1 filings. UCC-1 filings are used by lenders to announce their rights to collateral or liens on secured loans and are usually filed by lenders with your state’s secretary of state office when a loan is first originated.

When do you use all assets in UCC-1?

“‘All Assets’ is the Key When Drafting UCC-1 Financing Statement Collateral Descriptions,” by Jason I. Miller was published in the Commercial Finance Association Blog on January 30, 2017. To read the article online, please click here.

What are the different types of UCC filings?

In addition to these two basic types of UCC liens, a lien can either be labeled a UCC-1 or UCC-3 filing type. UCC-1 is a standard UCC lien. Every new UCC lien is UCC-1 and stays that way until there is a change with the lien. A UCC-1 becomes a UCC-3 if there is any kind of amendment to that original UCC filing.