Credit Evaluation School Dec 2022

Reference Guide for Credit Documents

UCC / Security Agreement / Financing Statement • Contract between bank and the borrower • Standard format modified by each state to meet local circumstances • Non ‐ real estate collateral provided by borrower to enhance payment prospects • Establishes priority of lien on collateral • Purchased money UCC has priority over all other UCCs regardless of date filing – Some filings are very broad (e.g. all farm equipment) • Most are filed through the Secretary of State

– Timber, mineral rights, fixtures filed with county like a mortgage • Search can be obtained based on borrower’s name • UCC is generally good for 5 years: Continuations should be filed.

27