The Uniform Commercial Code (UCC) is a complex act established to bring uniformity to commercial transactions that occur within the United States. If you are considering preparing, filing or searching a UCC, let us help streamline this otherwise cumbersome process.
UCC Search Explained
A UCC recorded in the land records indicates there is certain property installed on the premises that is not paid for. Legally, it puts the creditor in the position of a secured creditor; and a perfected UCC financing statement may be acted on in case of default. In the event of a bankruptcy proceeding, the creditor will be in a better position to enforce its legal rights.
For example, if you have a new furnace installed by the local utility company it will record a UCC Financing Statement that will act as a lien against the property until the furnace installation cost is paid. A UCC may be recorded against commercial property when commercial fixtures have been purchased on credit and installed.
UCC stands for Uniform Commercial Code. A UCC Financing Statement expires after 5 years unless a Continuation Statement is filed before the 5 year period has expired. It can be continued until the debt is paid.