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A UCC filing, or Uniform Commercial Code filing, is a legal form filed by a creditor when you use assets to secure a business loan. The filing establishes the creditors legal right to seize the collateral in the event you default on the loan.
Simply put, a UCC lien or filing is a document that a lender files with the government to create a security interest in the personal property of a borrower to protect a lender from nonpayment. So, if a borrower fails to pay, a lender has the legal right to repossess the property listed as collateral.
As the last state to adopt the UCC, Louisiana was fortunate to implement a filing system that benefited its users by allowing the filing of financing statements with any of the 64 parish filing offices.
Understanding a Uniform Commercial Code-1 (UCC-1) Statement Its purpose is to allow a creditor to claim collateral on financing with a debtor. The creditor will have the right to the property if the debt is not repaid.
A creditor with a UCC lien against your assets could go after things like cash from your bank account, your car or personal property, and any assets in the UCC-1 filing. States place rules to protect equity of your home, a personal vehicle, retirement funds, and business equipment.
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A creditor files a UCC-1 to provide notice to interested parties that he or she has a security interest in a debtors personal property. This personal property is being used as collateral in some type of secured transaction, usually a loan or a lease.
UCC-1 Financing Statements may be filed with any Louisiana Parish Clerk of Court without regard to the debtors address, location of the collateral or of related immovable property. UCC-3 Amendments must be filed in the same filing office as the initial financing statement.

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