Article 9 — Secured Transactions · Section 9-506
Explore UCC § 9-506 which addresses the effectiveness of financing statements in secured transactions.
Source: U.C.C. § 9-506
A financing statement is not rendered ineffective if it fails to sufficiently provide information in one or more of the categories listed in § 9-502(a); provided that the financing statement is otherwise sufficient under § 9-502, and the filing office accepts the record for filing. The failure of a financing statement to sufficiently provide information in one or more categories does not affect the validity of a security interest.
UCC § 9-506 clarifies that a financing statement may still be valid even if it contains errors or omissions in certain required categories. This section emphasizes that the important factor is whether the financing statement is otherwise sufficient and accepted for filing.
A document filed to perfect a security interest in collateral under Article 9 of the UCC.
An interest in personal property or fixtures that secures payment or performance of an obligation.
Example 1
A creditor files a financing statement that incorrectly identifies the debtor’s name but is otherwise sufficient; the security interest remains valid.
Example 2
A lender submits a financing statement without detailing all the collateral categories, yet the filing office processes it, rendering it effective.