Legal Question in Business Law in California

Re: ucc1

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Re: ucc1

The Uniform Commercial Code is a law that has been adopted in all 50 states with minor state-to-state variations, hence the notion that it is a "uniform" law. It is usually abbreviated as "UCC."

The UCC covers a wide variety of commercial transactions and the legal rights and duties of the parties to such transactions -- these include sales, leases, banking and more. The purpose, or one of the purposes, of the UCC is to allow us to do business from state to state as a nation, rather than a collection of 50 or more pricipalities with different laws for interstate transactions.

The UCC-1 is a more-or-less standard form which allows a party claiming a security interest in certain personal property (as distinguished from real property, a/k/a real estate, to let the world be on notice that such a security interest exists - sort of a "hands off my collateral" sign.

A UCC-1 can be as short as one page and is on a standardized form. It shows the name of the debtor, the name of the secured party, and a brief description of the collateral.

The secured party fills out the UCC-1 and records it with the Secretary of State's office, which maintains a file than can be searched by members of the public.

This is similar to the recording of real-property deeds with the county recorder, except it works for personal rather than real property.