UCC-1

Can somebody tell me what is UCC-1 form? Under what circumstances it is filed?

TIA,

Ray

Comments(2)

  • commercialking23rd December, 2004

    The UCC-1 form is a creation of the Uniform Commercial Code and functions much like a lien or mortgage against real estate does except it it filed and recorded against personal (usually business related) property.

    If, for example you were to loan some money to a resturanteur and you wished to take a security interest in his equipment you would file a UCC-1 against the equipment. Should the resturanteur fail to make his payments you could file suit, get a judgement and take possession of the equipment. If he were to file for bankruptcy you would be a secured creditor and the other creditors could not claim the equipment as a general asset of the business to be liquidated to pay them. You would get paid first.

  • JohnMichael23rd December, 2004

    It can also be taken as a multiple asset lien as the equipment example above along with encumbering real estate.

    To learn more go to your state page at: http://www.sos.state.tx.us/ucc/index.shtml
    [addsig]

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