UCC Filing

A UCC (Uniform Commercial Code) filing is a legal document that a creditor completes in order to declare the creditor’s security interest in a debtor. The UCC filing essentially states that the creditor has a lien on specific company assets, meaning if the debtor fails to repay the loan, the creditor has a right to seize whichever assets the borrower has used as collateral to secure the loan.

UCC filings can be filed to cover specific assets or all assets. When the filing covers all assets that a debtor has, the creditor is said to have a blanket lien.

UCC filings are important because they determine the order in which lenders are allowed to seize assets from a debtor, if the debtor were to default. The first creditor to file a UCC has the first-position lien, meaning they are the first party to claim the borrower’s collateral.