Comercial/Business (UCC) Liens

Our Commercial/Business (UCC) Lien search may include: Filing Number, Filing Type, Filing Date, Filing Agency, Filing Agency Address, Debtor, Creditor, Assignee Party information, Expiration Date, Collateral, and more detailed information related to the filing. If there are multiple Secured Parties or Debtor Parties, this information may be displayed as well.

One thing about a Uniform Commercial Code (UCC) lien is important to keep in mind: While other types of liens may get filed because of something "bad" happening, like not paying a debt or taxes, a UCC lien is generally considered to be a normal part of small business financing. The lien serves as notice to other potential creditors that a party owes a lender money, and that assets of the borrower have been pledged to that lender to secure repayment of the debt. Generally, a security agreement gives the lender the right to use specific assets as collateral.

A UCC filing is a notice filed by lenders to stake a claim in a borrower’s assets in the event of default on a loan obligation. UCC liens can be filed against businesses or individuals. When an individual or a business enters into a financing agreement that is secured by collateral, like equipment, a UCC lien can be filed against assets pledged to secure the loan.

UCC liens work on a first come first serve basis, so if there is a default, the first lender to file a UCC lien will have first rights to that asset. In short, the lender is reserving their spot in line to collect on the assets pledged to them.

Generally, a UCC lien can be filed on the following types of assets:

  • Office equipment
  • Receivables
  • Inventory
  • Investment securities
  • Large operating equipment
  • Vehicles
  • Real estate
  • Commercial instruments, such as promissory notes
  • Letters of credit
  • Other goods used or owned by the business

One benefit of UCC liens in favor of creditors is that they prevent businesses from getting multiple loans collateralized by the same assets. Before the Uniform Commercial Code, a business owner could get multiple loans on the same piece of equipment because none of the lenders knew about each other.