Wisconsin UCC1 Financing Statement Addendum
Definition and meaning
The Wisconsin UCC1 Financing Statement Addendum is a legal form used to provide additional information related to a UCC1 Financing Statement. This addendum allows filers to include extra debtors, secured parties, or other details that may not fit within the confines of the primary form. It is essential in transactions involving secured interests, particularly when personal property is being used as collateral for a loan.
Who should use this form
This form is suitable for individuals or organizations that are entering into financing agreements where personal property serves as collateral. This includes lenders, borrowers, and businesses looking to establish a secured interest in property. Using this addendum helps ensure that all relevant parties are documented, which is crucial for legal transparency and security interests.
How to complete a form
To successfully fill out the Wisconsin UCC1 Financing Statement Addendum, follow these steps:
- Identify the name of the first debtor as listed in the related financing statement.
- If adding an organization or an individual as an additional debtor, provide their full legal name and mailing address.
- Fill in any additional information required regarding secured parties or additional collateral descriptions.
- Ensure all fields are filled accurately to avoid processing delays.
- Review the entire form for completeness before submitting.
Key components of the form
The Wisconsin UCC1 Financing Statement Addendum includes several key components that are vital for its proper use:
- Debtor Information: Names and details of the first debtor and any additional debtors.
- Secured Party Information: Details of the secured parties involved.
- Collateral Description: A description of the collateral that the financing statement covers.
- Filing Office Use: Space reserved for the filing office to include additional notes or identifiers.
Common mistakes to avoid when using this form
When completing the Wisconsin UCC1 Financing Statement Addendum, be mindful of the following common errors:
- Failing to provide complete names and addresses for all debtors and secured parties.
- Not accurately describing the collateral, which may lead to issues in enforcing secured interests.
- Overlooking the requirement to submit the addendum along with the primary UCC1 form, which can cause delays.
- Neglecting to review instructions specific to Wisconsin, as requirements may vary by state.
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FAQ
It should be noted that UCC financing statements filed now generally do not contain a grant of the security interest and generally are not signed or otherwise authenticated by the Debtor and therefore would not satisfy the requirement of a security agreement.
If you're approved for a small-business loan, a lender might file a UCC financing statement or a UCC-1 filing. This is just a legal form that allows for the lender to announce lien on a secured loan. This allows for the lender to seize, foreclose or even sell the underlying collateral if you fail to repay your loan.
Also known as a UCC-3, and, depending on the context, a UCC-3 financing statement amendment, a UCC-3 termination statement, and a UCC-3 continuation statement. Under the Uniform Commercial Code, a UCC-3 is used to continue, assign, terminate, or amend an existing UCC-1 financing statement (UCC-1).
Rules vary by State around releasing a UCC lien after a borrower satisfied the debt. Primarily there are two main ways to remove them. One way is by having the lender file a UCC-3 Financing Statement Amendment. Another way to remove a UCC filing is by swearing an oath of full payment at the secretary of state office.
A UCC-1 financing statement (an abbreviation for Uniform Commercial Code-1) is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor (a person who owes a debt to the creditor as typically specified in the agreement creating the debt).
Form UCC3 is used to amend (make changes to) a UCC1 filing.However, it is important to note that for a UCC1 filing a termination is only an amendment and that the UCC1 filing may be amended further, even after a termination has been filed. Box 3 Continuation A UCC1 filing is good for five years.
The secured party has 20 days to either terminate the filing or send a termination statement to the debtor that the debtor can then file. If this does not happen within the 20-day time frame, the debtor may file a UCC-3 termination statement.
A UCC1 financing statement is effective for a period of five years. A record that is not continued before its lapse date will cease to be effective, costing the secured party their perfected status and perhaps their priority position to collect. Once a financing statement has lapsed, it cannot be revived.