UCC – FAQ – UCC-1 and UCC-3

UCC-1 Financing Statement
UCC-3 Financing Statement Amendment
What information is required for a UCC-1 filing?

For a filing against an individual person as the debtor, the required information is:

  1. Last name, first name
  2. Mailing address, city, state, zip code and country.

For a filing against a business as the debtor, the required information is:

  1. Company name
  2. Mailing address, city, state, and zip code

The required secured party information is:

  1. Company name OR individual’s Last name, first name
  2. Mailing address, city, state and zip code
What will cause my UCC-1 filing to be rejected?

The most common reasons for rejected filings are:

  1. Debtor and Secured party appear to be the same individual
  2. Individual debtor is said to be a “transmitting utility”
  3. Failure to provide required information as listed above.
  4. Failure to include an appropriate filing fee.

If a filing is rejected, a letter will accompany the rejected form to act as a guide in making the necessary corrections.

What information is required for a UCC-3 filing?

Form UCC3 is used to amend (make changes to) a UCC1 filing.

The required information is:

  1. An acknowledgement name and address. (Recommended for return copy of the filing.)
  2. The file number of the original financing statement. (This is the number assigned by the UCC division to the original UCC1 filing.)
  3. Current record information (box 6) of the debtor on the initial financing statement. (Recommended)
  4. Name of the secured party on the initial financing statement. (box 9)
  5. One or more of the following boxes checked:
    1. Box 2 – Termination – This is a termination of the effectiveness of the financing statement by the secured party. However, it is important to note that for a UCC1 filing a termination is only an amendment and that the UCC1 filing may be amended further, even after a termination has been filed.
    2. Box 3 – Continuation – A UCC1 filing is good for five years. Within the last 6 months that the filing is active, it may be continued for another five years. However, the continuation amendment MUST be filed within the 6 month window before the lien lapses.
    3. Box 4 – Assignment – This is an assignment of interest to another secured party. Sometimes this is used to assign certain portions of collateral to specific secured parties. Box 7 of the form must be used in conjunction with this.
    4. Box 5 – Amendment (Party Information) – Select only one of the two boxes to indicate which is affected, the debtor or the secured party. Next, indicate what is to be done – name or address change, delete name, or add name. Boxes 6 and/or 7 should be used in this circumstance.
    5. Box 8 – Amendment (Collateral Change) – Indicate how the collateral is to be changed – deleted, added, restated or assigned. Descriptive information regarding the collateral should be included.
What will cause my UCC-3 filing to be rejected?

The most common reasons for rejected filings are:

  1. Amending debtor or secured party information so that the debtor and secured party appear to be the same.
  2. Failure to provide required information as listed above.
  3. Failure to provide an accurate initial UCC1 file number.
  4. Failure to include an appropriate filing fee.

If a filing is rejected, a letter will accompany the rejected form to act as a guide in making the necessary corrections.

I filed a UCC3 termination. Why is my lien still “CURRENT”?

A UCC3 filed as a termination is strictly an amendment. It does not affect the status of the financing statement. A lien’s status will only be affected by the lapse date. Upon lapse a lien will show as “LAPSED-INACTIVE” for one (1) additional year.

Administrative rule 34.05.06.310.02 states that:

A termination shall have no effect upon the status of the financing statement and the financing statement shall remain active in the information management system until one (1) year after it lapses.