Glossary
UCC-1
A public notice that a creditor claims an interest in your assets.
A UCC-1 financing statement is a public filing under Article 9 of the Uniform Commercial Code giving notice that a creditor claims a security interest in specified collateral, or in "all assets" (a blanket lien). Other lenders see it; a blanket lien from a small advance can block a larger bank facility later. Filings should be terminated after payoff, and you may need to request it.
How it appears in a contract
The security-interest clause and an authorization to file; check the collateral description.
Worked example
A bank declines a $150,000 line because a $20,000 advance funder filed a blanket lien eight months ago and never terminated it.
Illustrative figures on stated assumptions; not quotes.
What to ask
- Will a UCC-1 be filed, and on what collateral?
- Will it be terminated automatically at payoff?
- Does it conflict with existing lenders’ liens?
Related terms
Personal guarantee · Stacking · Equipment financing · all terms
Educational definitions, not legal advice. Contract terms and their legal treatment vary by provider and state; read your agreement and ask a professional.
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