Article 9 — Secured Transactions · Section 9-502
This guide provides an overview of UCC § 9-502, focusing on the requirements for a financing statement in secured transactions.
Source: U.C.C. § 9-502
A financing statement is sufficient only if it provides the name of the debtor and the name of the secured party, and indicates the collateral covered by the financing statement.
UCC § 9-502 outlines the basic requirements for a financing statement, which is a document that a secured party files to perfect a security interest in collateral. The statement must include the name of the debtor, the name of the secured party, and a description of the collateral.
A legal document filed to give public notice of a security interest in collateral.
The person or entity that borrows funds under a secured transaction and grants a security interest in collateral.
The lender or entity that holds a security interest in the collateral to secure payment or performance.
Example 1
A bank requiring a borrower to file a financing statement to secure a loan with the borrower's inventory.
Example 2
A car dealership filing a financing statement after selling a vehicle on credit and retaining a security interest in the vehicle until paid in full.