What is the Uniform Commercial Code (UCC)?

A code of laws containing 11 substantive articles which govern commercial transactions. UCC Article 9 on Secured Transactions provides the rules governing most transactions that couples a debt with a creditor's interest in a debtor's personal property. When a debtor pledges collateral in a secured transaction, a secured party needs to search for liens to ensure another party has not previously filed a lien against the same collateral. A secured party must then appropriately record a UCC financing statement to secure their interest in the collateral. If the debtor defaults, and the secured party has recorded an effective UCC, the creditor may repossess and sell the property to satisfy the debt.

CorpDirect provides you with the services, tools and resources needed to ensure proper due diligence for your transaction, including that UCC financing statements are properly filed and effective.