what is a ucc 1 statement 
a ucc uniform commercial code 1 statement is a legal notice filed by creditors to publicly declare their rights to potentially obtain the personal properties of debtors who default on business loans they extend often abbreviated as ucc 1 these notices are typically printed in local newspapers to alert the masses of the creditors intentions ucc 1s are required for all business loans under the uniform commercial code ucc and establish a relative priority over which specific assets may be seized and in what order while solidifying the collection pecking order in cases where there are multiple lenders to the same debtor understanding ucc 1 statementsthe ucc 1 statement serves as a lien on secured collateral where the components and filing procedures are comparable to the lien requirements in residential mortgage loan contracts the ucc 1 statement is a directive of the uniform commercial code ucc which governs business deals and activities in the united states according to the ninth article of the ucc titled secured transactions a lender must incorporate completed ucc 1 statements in a business loan s contract for it to be deemed effective the statements must include detailed information about the borrower and they must itemize descriptions of all assets named as the secured collateral for the loan while virtually any type of asset may serve as such collateral the most commonly used items include real estate properties motor vehicles manufacturing equipment inventory and investment securities such as stock and bond holdings as with any ordinary lien lenders must perfect the ucc 1 statement by filing it with the appropriate agency in the state where the debtor company is incorporated in most cases ucc 1 statements are filed with the secretary of state s office which subsequently time stamps the document and assigns a file number to the associated parties in industry jargon the process of issuing ucc 1 notices is referred to as perfecting the security interest in the debtor s property types of ucc 1 statementslenders have the option of filing the following two types of ucc 1 statements 