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A Uniform Commercial Code filing?or UCC filing?is a form of notice that lenders use when securing a borrower's loan with an asset or group of assets. This enables lenders to seize the listed property as a way of recouping loan funds in the case of borrower default.
The Uniform Commercial Code allows a creditor, typically a financial institution or lender, to notify other creditors about a debtor's assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.
UCC stands for Uniform Commercial Code. It is a uniform law that governs commercial transactions, including sales of goods, secured transactions and negotiable instruments. It is a comprehensive set of statutes created to provide consistency among the states.
In fact, it is sometimes called a UCC financing statement. A creditor files a UCC-1 to provide notice to interested parties that he or she has a security interest in a debtor's personal property. This personal property is being used as collateral in some type of secured transaction, usually a loan or a lease.
The filing fee for the application is $20.00 per Class entered in number 10 of the application. If there is only one (1) class indicated the fee is $20.00. If there are two (2) classes indicated, the fee is $40.00, etc. Make check, cashier's check or money order payable to the Tennessee Secretary of State.
1 financing statement is a legal form that a creditor files to give notice that it has the right to take possession of and sell certain assets belonging to the debtor for the repayment of a specific debt.