Uniform Commercial Code-1 Financing Statement

A UCC-1 Financing Statement is a legal document used to publicly record a lender's interest in a borrower's personal property as collateral for a loan. Filed with the appropriate state authority, it serves to notify other potential creditors about the existing claim, establishing priority rights. This filing helps protect the lender's interest by making their lien publicly known, which is important if the borrower defaults or goes bankrupt. Essentially, it’s a way for lenders to secure their position and ensure they have a legal claim to the collateral behind a loan.