NATIONWIDE UCC & Business Searches
Secretary of State
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The Uniform Commercial Code (UCC) is a compilation of statutes designed to perfect commercial transactions and to promote uniformity among various filing jurisdictions.
Notwithstanding their complexities, commercial transactions basically involve the sale of and purchase of goods.
Under the Uniform Commercial Code, financing records are filed to make a public record of secured transactions between a debtor and a secured party. The financing records are extremely important in establishing priority among creditors in judicial proceedings, including bankruptcy, to determine rights of conflicting creditors. Therefore, the fundamental objective of the UCC is to provide measures to protect the debtor and the secured party by filing a financing record in the proper jurisdiction under uniform provisions.
What is the Uniform Commercial Code?
The Uniform Commercial Code, which governs the filings made in the UCC Division, is located in Title 7, Article 9A of the Code of Alabama, 1975. UCCs, as referred in Article 9, are liens placed on
What purpose does the Uniform Commercial Code serve?
The Uniform Commercial Code serves a number of purposes and covers just about all commercial transactions. However, the main purpose of a UCC is to perfect the secured interest of the secured party in personal property collateral.
The UCC1 is the financing statement form recognized nationally under Revised Article 9 of the Uniform Commercial Code as the initial filing recorded in public records to perfect a secured party’s interest in a debtor’s personal property used as collateral or security in a transaction.
The UCC1F allows for the debtor to be placed on the Farm Products Registry only and does not perfect a lien. A UCC1 must also be filed in order to perfect a secured party’s interest in a debtor’s personal property used as collateral or security in a transaction.
The UCC3 is a financing statement amendment form recognized nationally under Revised Article 9 of the Uniform Commercial Code as the filing recorded in public records to amend the information for a previously filed UCC1. A financing statement amendment can add, delete, or change debtor or secured party information and collateral information. It can additionally assign or release partial or full rights in the collateral, as well as continue/terminate the effectiveness of the UCC1.
The UCC5 is the information statement correction form recognized nationally under Revised Article 9 of the Uniform Commercial Code as the filing recorded in public records to inform of any information that may have been filed in error. This form does not change/amend any filing/index and is for information purposes only.
The UCC11 is the financing statement search request form recognized in many states under Revised Article 9 of the Uniform Commercial Code as the form required by filing offices to request a search of their records for UCC filings on a particular party.
Financing Statement: The document filed at the state and/or local jurisdiction that states the names and addresses of the debtor and the secured party and a description of the collateral. When filed, a financing statement perfects the security interest of the secured party.
Amendment: A document that is filed to note some type of change to the original financing statement.
Assignment: An original creditor may assign his/her right in a secured transaction to another creditor.
Continuation: Usually done with a UCC3 form- continues an original financing statement for another effective period. The effective period is usually five years.
Termination: Once an obligation is paid or fulfilled, the original financing statement must be terminated by the secured party of record. Under Revised Article 9, debtors may file termination statements, but they are only effective if the secured party should have filed a termination and failed to do so.
Debtor: The party who owes payment or performance of a secured obligation. Secured Party: A lender in a secured transaction.
Collateral: The property subject to a security interest, such as accounts, goods, fixtures, etc.
Maturity Date: The date the debtor and the secured party agree to complete the terms of their agreement.
Farm Products: Goods that are crops, livestock, or supplies used or produced in farming operations or if they are products of crops or livestock in their unmanufactured states and if they are in the possession of a debtor engaged in raising, fattening, grazing, or other farming operations. If goods are farm products, they are neither equipment nor inventory.
Secured Interest: A lender’s right to personal property or fixtures that secured payment of performance of an obligation. The lender is deemed to have a security interest in the collateral.
Transmitting Utility: Any entity primarily engaged in the railroad, street, railway, or trolley bus business, the electronics or electronic communication transmissions business, the transmission of goods by pipeline, or the transmission of electricity, steam, gas, or water, or the provision of sewer service.