IncSmart Nevada (Small Business and Startups)
- A UCC-1 financing statement is a legal order that a creditor files to give notice that it has or may have an interest in the personal property of a debtor. The UCC order is filed in order to protect a creditor's security interest by giving public notice that there is a right to take possession of and sell certain assets for repayment of a specific debt with a certain priority. Once the UCC has been filed, the creditor shows a priority with other creditors of the debtor.
The UCC need only contain three items of information:
1.the debtor's name and address
2.the creditor's name and address
3.an indication of the collateral, which may be very general.
The UCC is generally filed with the office of the state secretary of state, in the state where the debtor is located. Before the debtor can sell property, they will have to obtain a "Release of Lien" first.
Financing statements are valid for five years. A "continuation statement" may be filed within the last six months prior to the expiration date. A continuation looks very similar to a financing statement. It must be signed by the secured creditor, must give the filing number of the original financing statement and must state that the original financing statement is still effective.
By David Oliver
For 10 years, IncSmart.biz Business Services has helped companies and people from all over the world form Nevada Corporations and Nevada Limited Liability Companies. When you call, email, instant message or live chat with our office, expect personal attention. We are very excited about helping you form your new company. Each state is so different when it comes to filing documents, you will know right away you are in the right place. #incsmart
How to form Nevada Corporation - Link
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How to pay Nevada Annual Report - Link
How to amend articles for INCs and LLCs - Link
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