Hawaii UCC1 Financing Statement

In other words, the debtor must sign the agreement. (The UCC uses the term authenticate to include the possibility of electronic signatures.) A security agreement normally will contain a clear statement that the debtor is granting the secured party a security interest in specified goods.

If the Debtor is a California Limited Liability Company, the UCC-1 would be filed with the California Secretary of State.UCC-1 Financing Statements do not have to be signed by either the Debtor or Secured Party; however, they must be authorized.

A UCC filing ensures you are a secured creditor and therefore in the best possible position to get paid. In addition, a Purchase Money Security Interest filing provides the priority right of repossession of your inventory or equipment at default or bankruptcy. You define default in your security agreement.

If the borrower has loans from more than one lender, the first lender to file the UCC-1 is first in line for the borrower's assets. This motivates lenders to file a UCC-1 as soon as a loan is made.

UCC filings are public records. Please do not put people at risk of identity theft by including social security numbers or any nonessential personal information on any documents for filing with the Secretary of State.

What is a UCC filing? A UCC filing is a legal notice a lender files with the secretary of state when they have a security interest against one of your assets. It gives notice that the lender has an interest, or lien, against the asset being used by you to secure the financing.

The UCC-1 Financing Statement is filed in order to protect a lender's or creditor's security interest by giving public notice that there is a right to take possession of and sell certain assets for repayment of a specific debt with a certain debtor.

A UCC-Uniform Commercial Code-1 statement is a legal notice filed by creditors as a way to publicly declare their rights to potentially obtain the personal properties of debtors who default on business loans they extend.

Identify the proper location to file the statement. Usually the form is filed with the state's UCC office. If real property is used as collateral, you may also need to file a copy of the UCC financing statement with the register of deeds in the county where that property is located.

A UCC filing on your credit report isn't necessarily bad, but it could lead to complications if you don't make your payments or need a secondary loan. If there is a UCC-1 financing statement on your credit report and you make all payments on the loan it was derived from, there is no cause for concern.