Virginia Exhibit to UCC-1 Financing Statement regarding a Fixture Filing for a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• Control #: US-1177BG
• Format: Word; Rich Text

Description

A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. Personal property is basically anything that is not real property.

Title: Understanding the Virginia Exhibit to UCC-1 Financing Statement for Fixture Filing in Commercial Loans Introduction: In Virginia, when securing a commercial loan by including fixtures as collateral, it is crucial to file a UCC-1 Financing Statement. To provide utmost clarity and ensure the validity of the transaction, a specific exhibit is attached to the UCC-1 Financing Statement known as the Virginia Exhibit to UCC-1 Financing Statement for Fixture Filing. This comprehensive description outlines the key details and types of Virginia Exhibits related to Fixture Filings for Commercial Loans. Keywords: Virginia, Exhibit to UCC-1 Financing Statement, Fixture Filing, Commercial Loan, Collateral, UCC-1, Exhibit types. 1. Definition and Purpose: The Virginia Exhibit to UCC-1 Financing Statement for Fixture Filing is an additional document used to identify fixtures that are considered part of the collateral for a commercial loan. By outlining the specific properties and their legal descriptions, lenders and other interested parties gain a clear understanding of the fixtures involved in the transaction. 2. Components of a Virginia Fixture Filing Exhibit: — Legal Description: The exhibit provides a detailed description of each fixture by stating its legal particulars, including address, boundaries, dimensions, and any relevant property identification numbers. — Attachment Date: This field in the exhibit records the date when the fixture became affixed to the real property. Granteror and Grantee Information: Both the lender (secured party) and borrower (debtor) details are included to establish the relationship between the parties involved. — UCC-1 Financing Statement Reference: The Virginia Fixture Filing Exhibit must refer back to the corresponding UCC-1 Financing Statement, ensuring linkage and consistency between the documents. 3. Types of Virginia Fixture Filing Exhibits: — Standalone Fixture Exhibit: A common type of Virginia Exhibit, it comprehensively covers all fixtures involved in the commercial loan agreement, providing sufficient detail for legal identification and enforceability. — Supplemental Fixture Exhibit: In cases where the initial UCC-1 Financing Statement does not include all the necessary fixture details, a supplemental exhibit may be attached to rectify any omission. It updates and completes the information contained in the original fixture filing. 4. Importance of Virginia Fixture Filing Exhibits: — Legal Protection: These exhibits serve as concrete evidence of the secured party's interest in the fixtures and protect their rights in case of default or bankruptcy. — Public Notice: By filing the exhibit alongside the UCC-1 Financing Statement, the information becomes accessible to the public, ensuring transparency and avoiding potential disputes in the future. — Lender's Due Diligence: The comprehensive description provided within the exhibit assists lenders in assessing the value and risk associated with granting the commercial loan. In conclusion, the Virginia Exhibit to UCC-1 Financing Statement for Fixture Filing plays a vital role in securing and documenting commercial loans involving fixtures as collateral. By providing a detailed legal description of fixtures, these exhibits enhance transparency, protect the interests of the secured party, and facilitate a smooth lending process. Keywords: Virginia, Exhibit to UCC-1 Financing Statement, Fixture Filing, Commercial Loan, Collateral, UCC-1, Exhibit types.