UCC-1 Form (commonly called a UCC financial statement) is a form that creditors should file with states in which they have a security interest in personal property. The financial statement serves a similar purpose as recording a deed for real property: registering debt with a state so other creditors and the government can track legitimate security interests in property. Creditors negotiate with debtors to have senior security interests, and with limited exceptions, creditors that file a UCC-1 Form and related documents will rank above other creditors in accessing assets should the debtor become insolvent. However, if they do not file a financial statement, another creditor may negotiate and register a security interest on the same property. In which case, the new creditor likely will rank above the old creditor because there was no warning to the new creditor about the pre-existing security interest. Most states require the same form with limited variations and typically require basic information about the debt including the parties, amounts, contact information, and sometimes extra documentation. New York uses an old UCC-1 Form that has quite a few differences from all other states, however, such as requiring more information on the form and information in an addendum.
[Last updated in May of 2022 by the Wex Definitions Team]