A UCC-1 (Uniform Commercial Code-1 statement) is a legal notice filed by a creditor to declare its right to seize certain assets of a debtor who defaults on a loan. When one files a UCC-1 statement through the Secretary of State, it tells the public that specific property has been pledged as security for an existing debt.
For example, a drive-in movie theatre needs to borrow money from a creditor for a projector and stereo equipment. The creditor will record a UCC-1 and describe the projector and stereo equipment that was purchased with the loan. If the borrower fails to pay the creditor, the creditor can seize the described equipment. Click here for a step-by-step guide on filing a UCC-1.
Additionally, you can view detailed UCC/Federal Liens search information by clicking here.