Where a UCC-1 financing return is to be submitted depends on the location of the debtor and the collateral used to secure the loan or lease. Their location, so different, is not a factor. In all cases, you should submit a UCC-1 to the Office of the Secretary of State in the state where the debtor is registered or organized (if a business is) or who lives (if an individual is). If security is real estate (for example. B a mortgage or equipment), you should also submit a UCC-1 to the district registry office in the county where the debtor`s property is located. If everything goes according to plan and you repay your loan successfully, the lender will have to file a UCC-3 financing return to terminate the UCC`s pledge. However, it is not scandalous for reckless lenders to submit a UCC-3, even after the borrower has repaid the full amount. This can create problems when the borrower is looking for another credit. There is a case related to the example I have at the bottom of the screen where the court said that there was only one grocery store described at that address, gave no indication as to what it covered.
Were they fixtures, accounts, an inventory at this address? If the court could not determine what it meant, apparently no one else could do it and the funding declaration was therefore insufficient. In the end, therefore, you do not accidentally limit the extent of the interest of security. But there`s an exception. There are a few registration offices out there that check electronically submitted warranties for certain words and phrases used by some anti-government groups that use the UCC system to harass and deceive and intimidate officials. So you have special screening and you could make a funding statement that contains certain words in the guarantees. There are very few states that do, but there are a few that look at the guarantees for that purpose. Another question that sometimes arises is the question of what is the background of an external document for guarantees? Sometimes you see things like “See Appendix A,” which are also shown here, or all the guarantees are described in the master security contract, something along those lines. As a general rule, this is a perfectly acceptable method of establishing a security declaration that relates to an attached document.
In fact, you can even paste images of documents with many electronic storage systems throughout the country. It is therefore not uncommon to refer to a calendar, attached exhibition or other document. Another area that can sometimes be confusing is the description of warranties for devices. The word fixtures or generic description super are usually sufficient, as well as a specific description of the article. However, a specific product description or supergenerative description does not contain the word Fixtures. Now, when it comes to a fixture deposit, one of the conditions of a fixture deposit is that the funding statement describes . . . . either the funding establishment indicates that it includes such goods.
Therefore, if a UCC fixing request does not say fixtures, it is probably not sufficient under section 9-502 (b). In accordance with UCC standards 9-503 and 9-504, the financing plan must contain only three pieces of information: if the borrower does not delay the loan guaranteed by the UCC`s financing declaration, the lender has several options.