A creditor obtains a security interest in its customer’s property in order to increase the likelihood of payment of its claim. To obtain a valid and perfected security interest in its customer’s personal property, a creditor must file a financing statement in accordance with Article 9 of the Uniform Commercial Code (UCC), as adopted in the applicable state in which the creditor is filing the financing statement.

UCC Article 9 provides strict requirements regarding the form and manner in which a financing statement must be filed. These requirements are intended to ensure that the financing statement sufficiently identifies the debtor and the pledged collateral so as to put other potential creditors on notice of the existence of the security interest.

Click here to view the full article