A UCC is a security agreement on personal property that is recorded to protect the lender’s or secured party’s investment. In a security agreement, a loan is secured by personal property as collateral, thereby giving the lender rights in the property.
As a direct result of revisions to Article 9 of the NC Uniform Commercial Code enacted by the 2000 NC General Assembly, the procedures for filing UCC Financing Statements have drastically changed.
Effective on and after July 1, 2001, only those UCC’s filed(1) as fixture filings, (2) where the collateral consists of timber to be cut, or (3) those involving as extracted collateral (oil, gas, or other minerals that are subject to a security interest) will be filed in the local Register of Deeds office. All other UCC’s will be filed in the Office of the NC Dept. of the Secretary of State, Uniform Commercial Code Section, PO Box 29622, Raleigh, NC 27626-0622.
For more information on the recent changes in the law and other UCC related questions please visit the NC Secretary of State’s website at: www.sosnc.gov/ucc.
There are three primary types of UCC filings as described below:
UCC-1: Financing Statement
The UCC-1 is a form used in an initial filing of a financing statement. According to G. S. 25-9-402, a financing statement must contain the following information:
- Secured party’s name and address
- Debtor’s name and address
- Statement indicating types and/or descriptions of collateral
UCC-3: Financing Statement Amendment
The UCC-3 is used for five kinds of secondary statements:
- Continuation of a financing statement
- Termination of a financing statement
- Assignment of a secured party’s rights under a financing statement
- Amendment to a financing statement
- Release of all or part of the collateral covered by a financing statement
UCC-11: Request for Information or Copies
The UCC-11 is a request for information on a particular debtor, detailing any active financing statements or assignments only.
The following is a list of reasons UCC will be rejected for filing by our office:
- The UCC is not communicated by a method authorized by our office (we are unable accept any electronic filings). G.S. 25-9-516(b)(1)
- The fee enclosed is not equal to or greater than the statutory fee. G.S. 25-9-516(b)(2)
- The UCC cannot be indexed for one of the following reasons:
- the initial financing statement does not provide a name for the debtor. G.S. 25-9- 516(b)(3)(a)
- the amendment or correction statement does not identify the initial financing statement number and debtor’s name. G.S. 25-9-516(b)(3)(b)(1)
- the amendment or correction statement identifies an initial financing statement whose effectiveness has lapsed. G.S. 25-9-516(b)(3)(b)(2)
- the initial financing statement, or an amendment that provides the name of a debtor not listed on the initial financing statement, does not identify the debtor’s last name. G.S. 25-9-516(b)(3)(c)
- The UCC does not identify real property to which it relates. G.S. 25-9-516(b)(3)(d)
- The initial financing statement or amendment that adds a secured party of record does not provide a name and mailing address for the secured party. G.S. 25-9-516(b)(4)
- The initial financing statement or amendment that includes a debtor not included in the related initial statement does not:
- provide a mailing address for the debtor G.S.25-9-516(b)(5)(a)
- indicate whether the debtor is an individual or an organization G.S.25-9-516(b)(5)
- indicate the type of organization if the debtor is a business, the jurisdiction of the organization, or the organizational identification number (or an indication that there is no organizational number). G.S. 25-9-516(b)(5)(c
- The assignment in the initial financing statement or amendment does not provide a name and mailing address for the assignee. G.S. 25-9-515(b)(6)
- The continuation statement is not filed within the six month period as required by G.S. 25-9-516(b)(7).
- The UCC does not indicate that the statement is to be filed in the real estate records.
- Non-real estate related amendments, are not recorded in the local filing office (Register of Deeds Office). G.S. 25-9-710(b)
Effective July 1, 2001 fees for UCC initial financing statements, correction statements, and all amendments, including terminations, are as follows:
- One or two pages: $38
- Three to ten pages: $45
- Over ten pages: $45 + $2 per page over ten