Article 9 — Secured Transactions · Section 9-401

UCC § 9-401

Quick Answer

What does UCC § 9-401 cover?

This section outlines the requirements for perfection of security interests in collateral, focusing on how and where filing must occur.

Source: U.C.C. § 9-401

Official Text
A filing is generally done in the office designated for the filing of financing statements. The location of filing is determined by the jurisdiction where the debtor is located or in the case of certain types of collateral, where the collateral is located.
Plain Language

UCC § 9-401 specifies the requirements for filing a financing statement to perfect a security interest. It indicates where a creditor must file their notice to ensure their rights in the collateral are protected against other creditors and parties.

Key Definitions

Financing Statement

A document filed to give public notice of a security interest in the collateral.

Perfection

The legal process by which a secured party protects its security interest against other creditors.

Practical Examples

Example 1

A lender files a financing statement in the state where the debtor is incorporated to secure their interest in the debtor's inventory.

Example 2

A manufacturer secures its interest in equipment by filing a financing statement in the state where the equipment is located.

Common Exam Issues
  • Determining the correct location for filing based on the type of debtor or collateral.
  • Understanding the implications of improper filing and its impact on the perfection of security interests.
Related Sections
  • ucc-9-402
  • ucc-9-403

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