UCC stands for Uniform Commercial Code. The UCC is a set of laws governing commercial transactions, such as the sale of goods. It also covers secured transactions, where a lender has the right to enforce a borrower`s guarantee in the event of the borrower`s default. This is also called hedging interest. Finally, the UCC regulates negotiable instruments. Negotiable instruments are a special type of document that guarantees payment on a fixed date or on demand. A cheque or bank note are good examples of a negotiable instrument. Not all business transactions require a UCC-1 application. If someone pays you cash for your product or service, you don`t need to deposit a UCC-1 because there is no debt.

However, you should deposit if you are involved in a transaction that creates debt with an asset as collateral. For example, if you extend a mortgage on the purchase of a home, provide someone with financing to buy a car, lend money as part of a loan, or offer a loan for the lease or purchase of equipment of any kind, consider producing a UCC-1. However, you can renew a UCC-1 application before the end of the five-year period. You have the option to submit a statement of continuance. You must file this declaration of continuance within six months of the expiry date or expiry of the initial filing. Effective July 1, 2013, candidates must use forms approved by the International Association of Business Administrators and adopted by regulation of the Secretary of State. All other forms will be rejected. The prescribed forms are available in fillable format on this website under UCC Forms. CSC`s UCC filing services can help you file your return faster and more accurately to better protect your security.

Learn more. *Note: The UCC Financial Statement (UCC1AD Form) and/or the UCC Funding Statement (UCC1AP Form) may be submitted as an appendix to the UCC Financial Statement (UCC1 Form) (see instructions on the form). Form UCC1AP can only be used in conjunction with Form UZC1 to add multiple debtors or secured parties. An applicant may attach any number of additional and supplementary forms to the UCC funding statement (UCC Form 1), and the application fee is determined by the total number of pages, as described under Fees. It is important to consider state filing processing times when filing a UCC registration. Depending on how you submit your application โ€“ electronically, by U.S. mail, by courier or in person โ€“ the submission processing time can be immediate (often in the case of electronic filing) or take up to 30 days (in the case of paper forms filed in Vermont). As states review their systems, they may also change their requirements or processing times. Where UCC records are stored depends on the law of perfection.

Typically, this is the law of the state in which the debtor is located in accordance with UCC ยง 9-307. A rule of thumb when filing a UCC registration is to file with the central repository of the state where the debtor is located. However, there are exceptions, for example when UCC registrations are filed as an instrument application. The UCC-1 funding statement and the UCC-3 funding statement amendment can be filed online through the Registrar`s Information System (CIS). The Uniform Commercial Code (UCC1) financing statement is a legal form that a secured party submits to indicate that it has or may have an interest in a debtor`s personal property. Multiple UDC applications and inquiries submitted in a single envelope must be accompanied by a letter of instruction indicating the desired processing order. In the absence of specific processing instructions, the same requests for information from the debtor will not be processed if the corresponding UCC1 document cannot be submitted. Why should you submit a UCC-1 if you meet the criteria listed in the previous answer? In a word: protection. We don`t live in a perfect world. Although the vast majority of people you deal with intend to reimburse you, unforeseen events do occur. Your debtor may face future financial difficulties that make it difficult or impossible to repay you. Or the debtor dies even before repaying the loan.

If this happens, what happens to your loan or guarantee? Upon acceptance, the form shall bear the name of the applicant, the date and time of filing, and a serial file number. A confirmation copy is returned to the applicant with a confirmation letter detailing what has been indexed in the applicant`s indexing system. Create, sign and submit the Uniform Commercial Code financing statement in paper form: There are different types of CUC. The most basic and well-known is UCC-1. Essentially, a UCC-1 can be called a funding statement. In fact, it is sometimes referred to as the UCC funding state. A creditor files a CDU-1 to inform interested parties that it has a security right in a debtor`s personal property. These personal assets are used as collateral in some type of secured transaction, usually a loan or lease. When submitting a UCC funding statement, the most important information on the UCC form is the name of the debtor. If the name is incorrect or contains even a slight discrepancy, this could make the funding statement seriously misleading. For example, if the debtor is a registered organization, the funding statement is sufficient only if it includes the name of the entity as indicated in the most recently filed or published public organic registry with or published by a state or the United States, as further described in Section 9-503(a)(1) of the UCC. Be sure to carefully check your punctuation and spelling on all UCC documents to avoid even minor deviations from legal regulations.

CSC may use our UCC client account tracking services to help you automatically track government commercial organization data for client name changes. Deciding where to submit UCC financial statements by place of residence of the debtor An essential element in the execution of commercial transactions, mergers and acquisitions, as well as in the granting of commercial loans is the submission of financial statements under the Uniform Commercial Code (CDU). But even if you`re an experienced applicant, it`s possible to make subtle mistakes in the registration process โ€“ and that can lead to disaster and lead to imperfect security interests. An amendment to the funding statement (UCC 3) shall not relate to more than one initial funding settlement number, unless the submission complies with the provisions relating to the amendment of the main statement or main endowment. All documents shall be submitted to the Agency from the date of receipt. If a document is found to be defective and returned, the filing date at the time of resubmission is the date on which the corrected document was received. A UCC-1 application is valid for five years. After five years, it is considered confiscated and is no longer valid. If your debtor remains indebted to you and is experiencing financial hardship or declaring bankruptcy, you have no guaranteed interest if your UCC-1 application has expired. In other words, you are now an unsecured creditor and you have to go all the way when it comes to splitting assets. This means that you risk losing most or all of your loan or lease assets. Social Security numbers, bank account numbers, access device numbers, and certain other types of information are confidential under the Public Information Act, Chapter 552 of the Texas Government Code.

The law prohibits the Secretary of State from disclosing this information. The OPC will redact this information from documents filed with our Office and made available to the public. An unredacted copy of the document will be retained for access by employees of the Secretary of State in response to requests from law enforcement or other authorized requesters. If you have concerns about drafting, do not include confidential information in the description attached to your UCC application. The answer is that you can lose all or part of it. A UCC-1 establishes you as a secured party. This means that in the event that the debtor goes bankrupt, you have a “place in the queue,” so to speak, when a court divides that debtor`s assets among creditors. If you`re a secured creditor, you`re at the top of the list (probably behind any government agency like the IRS).

This means that your chances of getting all or at least some of your money or assets back are much higher. If you have not filed a CDU-1, you are considered unsecured and, as such, you will be placed behind the secured creditors. As you can see in the questions and answers above, UCC-1s are important documents. They guarantee your insured interest in a loan or lease and allow you to be at the forefront of creditors if a debtor experiences financial difficulties or declares bankruptcy during the term of your contract. UCC-1s help you mitigate risk and protect assets (guarantees). You may be wondering if you have made a correct and correct (perfected) filing, or you may be concerned about forgetting to file a declaration of continuance on time as the expiry date approaches. Secretaries of State have set up websites where you can submit a UCC-1. You will also have instructions on how to use the website, as well as the forms you need to fill out. Individual counties in each state may have websites where you can submit. You may need to submit your application by mail or, in increasingly rare cases, in person.

Be sure to check first. Under Chapter 9, Subchapter G, Texas Business & Commerce Code, county clerks must record cancellations on financial statements registered with the county clerk`s office by July 1, 2001.