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UCC – A contract is formed even if the acceptance contains additional or different terms. o Consideration – There must be a “bargained for exchange” between the parties of something of legal value. FL follows the MINORITY rule that consideration is a benefit to one party or a detriment to the other party.

One of the most common mistakes creditors make when filing a UCC-1 financing statement is including incorrect information, including: Debtor's Name: The debtor's name must match the name on a government-issued identification. You cannot eliminate a middle name, misspell the name, or even add an extra space or period.

Signature by Debtor and Owner The debtor or an authorized agent must sign the security agreement. Security agreements can be ruled invalid because of mistakes in the debtor's name. Be careful of related entities to make sure that the signature on your security agreement matches the correct legal name of the debtor.

"Amendment" means a UCC record that amends the information contained in a financing statement. Amendments include assignments, continuations and terminations. "Assignment" is an amendment that assigns all or part of a secured party's power to authorize an amendment to a financing statement.

A lien can be placed against specific collateral?like an individual piece of equipment?or generally against a business' assets. The type of UCC filing used may depend on the type of business loan, loan amount, lender, borrower creditworthiness or other factors.

UCC filings typically expire after five years, and it's the responsibility of the secured party to file a continuation statement to extend the effectiveness of the financing statement.

Uniform Commercial Code (UCC) filings allow creditors to notify other creditors about a debtor's assets used as collateral for a secured transaction. UCC liens filed with Secretary of State offices act as a public notice by the "creditor" of the creditor's interest in the property.

UCC financing statements and financing statement amendments have a five (5) year life, and as such should be continued if the project period of performance exceeds the life of the UCC financing statement.

If a continuation is not filed, the financing statement will lapse 5 years from the original filing date. A continuation extends the filing period 5 additional years from the initial filing date.