What is a UCC-1?

UCC stands for “Uniform Commercial Code.” It is a federal code that is recognized in over 40 states. The UCC took the place of various state statues covering conditional sales, chattel mortgages, and other forms of personal property. 

Think about how a mortgage or deed of trust tie the home loan to the collateral – enabling a lender to foreclose on the property due to nonpayment of the note.  A UCC is a way to tie collateral (other than real estate) to the debt owed. 

A UCC-1 is on record with Secretary of State and/or the County Recording Office.