Financing Statement
What is this form?
The Financing Statement is a legal document used to record a security interest on personal property under the Uniform Commercial Code (UCC). This form is crucial for creditors to establish their legal right over specific assets in case the debtor defaults. Unlike other forms, the Financing Statement serves as public notice of this security interest, ensuring that other creditors are aware of the claim against the debtor's assets.
Form components explained
- Debtor information: Details about the individual or entity borrowing money.
- Secured party information: Information about the lender or entity providing the loan.
- Property description: Items or types of personal property covered by the security interest.
- Tax identification: Spaces for identifying tax ID numbers of the debtor and secured party.
- Proceeds and products clauses: Options to include collateral proceeds or products in the financing statement.
When this form is needed
This form is typically used when a lender needs to secure a loan with collateral. It is applicable in scenarios where a business or individual seeks financing but must provide assurance to the lender that the loan will be repaid. Situations such as purchasing inventory, equipment, or other assets using borrowed funds may require this form to protect the lenderâs interests by formally recording their claims on the debtor's property.
Who should use this form
- Lenders looking to secure their interests in personal property.
- Businesses obtaining loans that require collateral.
- Individuals borrowing money to finance a purchase that is secured by personal property.
- Creditors who want to establish a recorded claim against a debtor's assets.
Completing this form step by step
- Identify the debtor by providing their legal name and address.
- Enter the secured party's information, including name and address.
- Describe the personal property being secured by the loan.
- Specify the address where the secured goods will be located if applicable.
- Check the boxes for any applicable clauses regarding proceeds or products of the collateral.
- Sign and date the form to validate it.
Notarization guidance
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to provide accurate debtor or secured party information.
- Omitting details about the collateral or using vague descriptions.
- Not checking the correct clauses related to proceeds and products.
- Neglecting to sign or date the form, making it invalid.
Benefits of using this form online
- Immediate access to the form allows for swift completion and filing.
- Editable fields enable customization to meet specific needs without hassle.
- Access to lawyer-drafted content ensures legal compliance and accuracy.
Legal use & context
- The Financing Statement serves to protect the lender's interests in the event of debtor default.
- It is filed with appropriate state offices to establish public notice of security interests.
- Failure to file the statement correctly can result in loss of claim priority against the debtor's assets.
Key takeaways
- The Financing Statement is crucial for securing loans with collateral.
- Complete accuracy is essential when filling out debtor and secured party information.
- The form must be properly filed to protect the lender's interests legally.
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FAQ
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 term UCC filing comes from the uniform commercial code.
UCC-1 Financing Statements do not have to be signed by either the Debtor or Secured Party; however, they must be authorized.Although the UCC-1 Financing Statement does not require signatures, any attachment such as the legal description or special terms and conditions may require the signature of the Debtor.
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.
To assign (1) some or all of Assignor's right to amend the identified financing statement, or (2) the Assignor's right to amend the identified financing statement with respect to some (but not all) of the collateral covered by the identified financing statement: Check box in item 3 and enter name of Assignee in item 7a
Filer Information. Name and phone number of contact at filer. Email contact at filer. Debtor Information. Organization or individual's name. Mailing address. Secured Party Information. Organization or individual's name. Mailing address. Collateral Information. Description of collateral.
In all cases, you should file a UCC-1 with the secretary of state's office in the state where the debtor is incorporated or organized (if a business), or lives (if an individual).
The financing statement is generally filed with the office of the state secretary of state, in the state where the debtor is located - for an individual, the state where the debtor resides, for most kinds of business organizations the state of incorporation or organization.
Why file a UCC-3 form? The UCC-3 is the Swiss-Army-Knife of forms. Unlike a UCC 1, a UCC 3 can be used for multiple purposes. The actions one can take are Amendment, Assignment, Continuation, and Termination.
You should file a UCC-1 Financing Statement with the secretary of state's office in the state where the debtor is incorporated or located. If the collateral is real property, then you should also file a UCC-1 with the county recorder's office in the county where the debtor's real property is located.
