Continuation Statement - Definition
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Continuation Statement?
A continuation statement refers to modification or alteration made to a UCC-1 (financing statement) which makes it effective beyond its normal expiration date. The effect of a continuation statement is that a lien placed by a lender on the collateral of a borrower is extended beyond the original expiration date identified in the UCC-1 financing statement. Continuation statements are otherwise called UCC-3 continuation statements.
As stipulated in section 9 of Uniform Commercial Code, the continuation statement must be filed six months before the UCC-1 expires. A timely filing allows the extension of a financing statement five years after its filing date.
Lenders who do not file at this time are denied any extension or amendment to the expiration date of the financing statement.