What is a UCC-1 filing?

A UCC-1 filing is a legal document used to publicly declare a secured party's interest in a debtor's collateral under the Uniform Commercial Code (UCC). This filing serves to establish priority over other creditors in the event of the debtor's default or bankruptcy. It is typically filed with a state or local government office and includes details about the debtor, the secured party, and the collateral involved. UCC-1 filings are commonly used in business financing transactions to secure loans with personal or business assets.