Hanna Consultant Group


A UCC filing is a lien that can be filed under the Uniform Commercial Code. The Uniform Commercial Code was adopted to make it easier for companies to conduct business across the United States. When a secured party, such as a lender, leasing company, or trade vendor, provides a company or borrower with credit, it often files a UCC 1 Financing Statement. It is a public document that puts all other lenders and creditors on notice of the collateral that the UCC liens.

One particular type of UCC is known as a blanket filing, which means that all collateral including accounts receivable is pledged to the lender and liened. The challenge with a blanket UCC is that it includes not only the original assets but the proceeds of the assets and replacement property purchased therefor, for so long as the debt is in place.

Contrast that with a specific UCC filing where a particular piece of equipment is named as the asset being secured.

Without getting into too many details, the proper place for filing of a UCC against personal property is the Secretary of State of the place where the company is organized or, if it is not an organized company, where the company does business. If it is an individual, it is their principal place of residency.

Remember, UCC filings affect only personal property. This article discusses in particular that system and not the system of recordation of UCCs against trade fixtures or of liens against real property (which are primarily documented through deeds of trust and mortgages).

This is a complicated area of the law. Should you have any specific questions, please do not hesitate to contact me or your attorney for more information.

Ms. Drury is a Shareholder in the firm of Marquis Aurbach Coffing in Las Vegas, Nevada, and is chairperson of their transactional department. Drury was named a Leader in the Field of Real Estate for 2011 and was also named by Best Lawyers in America in the specialties of Corporate Law and Real Estate Law for 2011. Ms. Drury's practice focuses on transactions, with an emphasis in real estate. She documents and oversees entity formation, land and business acquisition, construction agreements, loans (construction and permanent), general operational and contract needs, and the ultimate sale of land or improved properties and businesses. Ms. Drury serves on the Executive Committees of the State Bar of Nevada's Real Property Law Section and Business Law Section, which, among other things, draft statutes for consideration and adoption by the legislature of the State of Nevada. Prior to joining Marquis & Aurbach, Ms. Drury served as Associate General Counsel at Station Casinos, Inc. Ms. Drury has a Bachelor of Arts in International Relations and Print Journalism from the University of Southern California, with a minor in Business Administration. She has a Juris Doctor Degree from the University of California, Hastings College of the Law.

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