In commercial loan transactions, lenders typically require borrowers to grant them security interests in certain tangible or intangible personal property and/or fixtures as additional collateral to ensure the timely repayment of the loan. Accordingly, lenders regularly request that title companies perform Uniform Commercial Code (UCC) searches to determine if the additional collateral is clear of existing encumbrances so that they may acquire an interest in the same.
A Uniform Commercial Code Financing Statement, or UCC Financing Statement, is the document used to provide notice to the public that a lender has a legally-protected interest in the personal property or fixtures described in the financing statement. UCC Financing Statements are typically recorded concurrently with the deed of trust or mortgage instrument used in the loan transaction and almost always are recorded at the state and local level.
Uniform Commercial Code Insurance, or UCC Insurance, pertains to loans that are secured solely by personal property. A UCC Insurance Policy, among other things, ensures that the related security agreement was duly authorized, executed and delivered, that it is a present grant of a security interest and that the grant covers the described collateral.