UCC1 - Financing Statement - Washington - This form is a financing statement used to cover certain collateral as specified in the form. This Financing Statement complies will all applicable state laws.
Title: Understanding King Washington UCC1 Financing Statement: Types and Detailed Description Keywords: King Washington, UCC1 Financing Statement, secured transactions, perfection of security interests, collateral, types. Introduction: The King Washington UCC1 Financing Statement serves as a crucial legal document relating to secured transactions in the state of Washington. This statement plays a vital role in perfecting security interests and protecting the rights of creditors in relation to collateral provided by debtors. In this article, we will delve into the detailed description of the King Washington UCC1 Financing Statement, including its significance and various types. Detailed Description: 1. Definition and Purpose: A UCC1 Financing Statement is a standardized legal form used to provide notice of a creditor's security interest in the debtor's personal property. By filing this statement with the appropriate Washington government agency, creditors legally establish their priority rights over collateral, ensuring protection and recovery of their assets if the debtor defaults on their obligations. 2. Significance and Benefits: — Provides legal protection: A UCC1 Financing Statement enables creditors to lay claim to the debtor's assets in case of default, offering a legal framework essential for enforcing security interests. — Priority assurance: It establishes a priority system based on the time of filing, ensuring the creditor's claim takes precedence over subsequent creditors. — Reduces lending risks: By accessing relevant public records, potential lenders can evaluate a debtor's existing liabilities and determine the extent of their security interests, mitigating lending risks. — Increases efficiency: The UCC1 Financing Statement standardizes the process, making it easier for lenders, attorneys, and other involved parties, saving time and effort. 3. Components of a UCC1 Financing Statement: The UCC1 Financing Statement typically contains the following elements: — Debtor information: Name, address, and sometimes Social Security or Tax ID number of the debtor. — Creditor information: Name and address of the party filing the UCC1 form. — Collateral description: Detailed description of the collateral securing the debt, ensuring specificity. — Filing location: The specific filing office where the statement will be recorded. — Priority agreement: Optional section used to outline priority rules for multiple creditors with competing interests. 4. Types of King Washington UCC1 Financing Statements: While the basic UCC1 Financing Statement remains consistent, there can be several variations and accompanying documents, such as: — Amendments: Used to modify, correct, or expand upon the information provided in the initial UCC1 Financing Statement. — Continuations: Filed before the initial statement expires to maintain the creditor's priority position and extend the filing period. — Terminations: Used to officially terminate or release the security interest when the debt is repaid, indicating the collateral is no longer subject to the creditor's claim. — Assignments: Filed when a creditor sells or transfers a security interest to another party, ensuring the new party has the appropriate legal rights. Conclusion: The King Washington UCC1 Financing Statement is an essential legal document that protects the rights of creditors and helps establish security interests in personal property. By understanding the significance of this statement and the various types associated with it, lenders and debtors can make informed decisions while navigating secured transactions in Washington effectively.
