financing statement

financing statement

A document filed in the public records; gives notice that a secured party claims a security interest in certain described goods and other personal property owned by a named debtor.It is also called a UCC-1 after the form provided by the Uniform Commercial Code.The purpose of the statement is to put other creditors, or purchasers, on notice that the security interest exists and will remain on the property even if sold and even if another creditor loans money against the same property. The financing statement does not give the security interest; it merely provides notice of the existence of a security agreement. If a creditor fails to obtain a signed security agreement,the financing statement will be useless. (Do not confuse with financial statement.)