21. What information is required in a “financing statement” filing?
Generally, to perfect a security interest, a secured party may file a security agreement in the appropriate government office. To be enforceable under the UCC, a financing statement must contain the following information:
• Debtor’s Name – Generally this requires a first and last name. It may also require any aliases or fictitious names necessary to identify the individual;
⁃ Note: This is particularly important when the debtor is a business operating under a fictitious name.
• Secured Party’s Name – Name of the secured party or her representative; and
• Identifies Collateral – A description of the collateral must be sufficient to identify the collateral or indicate that the financing statement covers “all assets” or “all personal property” of the debtor.
Additionally, the financing statement must meet the following requirements:
• Standard Form – It must be in the form authorized by the filing office.
⁃ Note: UCC §9-521(a) provides an acceptable form financing statement.
• Filing Fee – Must include a sufficient filing fee;
• Debtor’s Mailing Address – This requires an address where the debtor may receive notices with regard to the filing.
• Entity Status and Information – Debtor’s status as an organization (type, jurisdiction, organizational ID); and
• Secured Party’s Address – This requires an address where the secured party may receive notices with regard to the filing.
• Discussion: Why do you think it is important to include all of the above information in a filed financing statement? How do you feel about the ability to include a description indicating “all assets” or “all personal property”?
• Practice Question: Ervin is preparing a financing statement to secure payment of property he sold to Mandy. What information must he include in the financing statement?