Article 9 — Secured Transactions · Section 9-516
This section outlines the requirements for a secured party's authorization to file a financing statement, including the necessary information and the process for amending or terminating such statements.
Source: U.C.C. § 9-516
A financing statement is effective only if it is filed in a location that is authorized by the section, and it must provide the name of the debtor and the secured party, along with a description of the collateral. Upon termination or satisfaction of the secured obligation, the secured party shall promptly file a termination statement.
UCC § 9-516 explains what information must be included in a financing statement to make it valid and where it should be filed. Additionally, it describes the steps a secured party must take to terminate a financing statement once the debt has been paid or the secured obligation has ended.
A document filed to perfect a security interest in collateral, which provides notice to third parties of the secured party’s interest.
A lender or other entity that holds an interest in collateral to secure a loan or obligation.
An individual or entity that owes payment or performance of an obligation secured by a security interest.
Example 1
A bank files a financing statement to secure its interest in a borrower's machinery which serves as collateral for a loan.
Example 2
A car dealership files a financing statement to perfect its security interest in vehicles that customers finance through them.
Example 3
A supplier files a termination statement once a manufacturer pays off a loan secured by inventory.