What is a UCC-1 Statement?
How Does a UCC-1 Statement Work?
Let's say Company XYZ is a restaurant chain. It borrows $5 million from Bank ABC, which requires Company XYZ to pledge all of its kitchen equipment as.
In order to record the fact that the kitchen equipment is Bank ABC's collateral, the bank files UCC-1 statements with the Secretary of State in the state in which they do business.
UCC stands for Uniform Commercial Code.