UCC-1 Financing Statement
What does it mean
Filing a UCC-1 Financing Statement allows creditors to secure their loans using personal property assets such as Inventory or Accounts Receivable.
Why does it matter
A UCC-1 is the most common method used by a banker to perfect their security interest in collateral. The bank does this by filing this statement at the State where the borrower operates. This statement is publicly accessible, and with the exception of a Purchase Money Security Interest (PMSI), lien priority is determined based on the date of filing.
Other Relevant Terms
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