The Uniform Commercial Code (UCC) is a series of uniform regulations designed to streamline commerce between businesses across all 50 states and various territories of the U.S. The most important UCC form small businesses are affected by is a UCC-1 form also known as a Financing Statement. A Financing Statement is filed to perfect a security interest in named collateral and establishes priority in case of debtor default or bankruptcy. All lenders in the U.S. are required to use the same form to give public notice of their interest in certain or all assets of a business. UCC-1 forms are filed in the secretary of state’s office in the state of the debtor’s business, however, it can also be filed in multiple states if the business is on a border or if the business has locations in multiple states. All information on a UCC-1 is public information. Many states offer UCC searches online for a small fee. Before a lender makes a secured loan in which it intends to file a UCC-1 form,...
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