A requirement under Article 9 of the Uniform Commerical Code, our clients (attorneys, CPAs, enrolled agents, and other licensed professionals) are regularly requesting UCC Filings for their businesses, as well as those of their clients. A UCC filing is a financial statement submitted to the Secretary of State that details the corporate cash flow, internal rates of return, and balance sheets.
For example, when your client’s personal business assets are used as collateral for borrowing, a UCC-1 statement is prepared, signed, and filed; thereby creating a secured loan. The filing creates a lien against the the property which your client must pay off the debt before disposing of the property. The lien is registered in the state in which the business is located.
Before all this, consider completing a thorough UCC filing search. It is essential to perform a lien search to make sure there are no other UCC-1s filed against the piece of collateral potentially being financed. If several lenders have filed UCC-1s against the same piece of collateral, the one that shows the oldest file date/time stamp on it is considered the 1st lien. Priority of a lien is determined by the date/time it is received at the Secretary of State’s office.
Let us help you protect yourself and your client. Our UCC filing specialists can handle your UCC, Tax Lien, and Judgment needs at the state of local jurisdiction level. Within a matter of minutes, our searches will provide you with the most current and accurate information available. Attorneys Corporation Service, Inc. has simplified the filing request process by allowing you to submit your requests via fax, email, or internet.