Clients often call us to help them review a “UCC Financing Statement” that they have filed or have had filed against them (or their business). Here are the facts:
The Basics: What is a UCC Financing Statement?
Let’s start with the fundamentals. “UCC” stands for “Uniform Commercial Code.” (We’ll spare you the details on what that code is!) A UCC Financing Statement is simply a document that a person (or entity) files with the California Secretary of State that enables that person (or entity) to impose a lien on another person’s (or entity’s) assets in order to secure payment, performance, or a loan under a contract.
The person (or entity) that files the UCC Financing Statement is called the “secured party”; the person (or entity) that the UCC Financing Statement is imposed against is called the “debtor.”
What’s a UCC Financing Statement Look Like?
A UCC Financing Statement is a standardized form that is available on the California Secretary of State’s website here. The form requests basic information about the debtor and the debtor’s assets (“collateral”) that will be liened upon. (A lien is simply a legal right against someone’s assets. If a person (or entity) fails to pay their debt or perform as promised, a lien allows the lienholder to seize and sell those assets to satisfy that person’s debt.)
Where Do I File the UCC Financing Statement?
A UCC Financing Statement is filed with the California Secretary of State’s website via this link.
I Filed a UCC Financing Statement. What’s Its Status?
After filing a UCC Financing Statement, you may check its status by conducting a free search on the California Secretary of State’s website here by typing in the secured party’s or debtor’s name. If the name does not appear, the California Secretary of State has not yet processed your filing.
I Received a Copy of a UCC Financing Statement. How Do I Know It is Authentic?
If you receive a document that purports to be a UCC Financing Statement, you should first see if it contains an official stamp in its upper-righthand corner (the area that says “The above space is for filing office use only.”) If it does, this means that it is a properly filed document. You can also verify the UCC Financing Statement’s authenticity by going to the California Secretary of State’s website here.
Contact us for more information on UCC Financing Statements by e-mailing us at info@mnklawyers.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
