What is a UCC-1 agreement?

UCC-1 stands for Uniform Commercial Code Form 1. A security agreement used to place liens against specified business property.

UCC-1 n. a financing agreement form for using personal property (eg. equipment) to secure a loan under the provisions of the Uniform Commercial Code (UCC) adopted in almost all states. UCC-1 legal definition of UCC-1. UCC-1 synonyms by the Free Online Law Dictionary.

See also...

How has the UCC1 form changed?

Why are debtor and secured party signatures no longer needed on the UCC1 forms as of July 1, 2001?

JoC Online -- How has the UCC1 form changed?


Answered questions with 'ucc-1 agreement' in all categories...

WikiAnswers - Questions with 'ucc-1 agreement'

In the absence of a security agreement can a UCC-1 filing be considered evidence of a legal security interest?

Originally Posted by Unregistered In the absence of a security agreement can a UCC-1 filing be considered evidence of a legal security interest?

If a security agreement is not completed and signed by the debtor, their is no security and a UCC alone will not. If you know/believe there was a security agreement signed and cannot locate or get access to it: a UCC-1 that has the "stamp" or other certification on it that the Secretary of State "recorded" the UCC-1, then the creditor indeed has a security interest. You can call the Sec'y of State and ask the procedure for filing a UCC-1. The process of doing so, and receiveing a copy back with the recording information on it, is called "perfecting a security interest". The office can also tell you how to do a search, and the cost, to find out if the UCC-1 was recorded, and the cost of getting a copy. This is all public information, in fact, the act of filing the UCC-1 in this "public" manner is part of the legal requirement of perfecting. In additon to talking with the office of the Sec'y of State, you can learn more, including the extent this is accurate in the state in question, by talking with business lawyers and bank loan officers.

Originally Posted by Unregistered In the absence of a security agreement can a UCC-1 filing be considered evidence of a legal security interest?

You have to have the sec agreement firstly,

it (the sec agreement) is valid as between the parties

but w/o the UCC statement the rest of the world has no notice and so are not bound by the sec agreement

Okay, this has come up in a discussion with some folks over the current economy.

Let's say I run a business selling high priced items. HPI's for short. I get financing on all my HPI's from Big Finance Company (BFC). BFC files UCC-1s on all my equipment.

Now there's a business, let's call it Joe Blow's Digging Company. Joe needs HPI's for his busines but he can't get financing. Accordingly, I agree to do a rental purchase option for Joe.

If Joe goes belly up, should I have a UCC-1 on Joe's equipment listing my business as the lein holder or will the UCC-1's on that equipment from BFC suffice?

There's a starbuck's gift card riding on the answer, thanks!