A UCC-1 is a short form filed under Article 9 of the Uniform Commercial Code, usually with the secretary of state. It names your business, the secured party and the collateral. You do not sign it separately: signing a security agreement authorizes the filing.
The filing does not take money from your account. It puts others on notice of the claim and sets its priority, since competing security interests generally rank by the date they were filed or perfected. Future lenders search these records, so an existing filing can slow or block new financing.
A filing stays effective for 5 years unless continued, and it does not disappear when you pay off the deal. Ask for a UCC-3 termination at payoff: once nothing is owed and no more funding is committed, the secured party generally must file or send one within 20 days of your written demand. This is general information, not legal advice.
Sources
- UCC § 9-509. Persons entitled to file a record — Legal Information Institute, Cornell Law School (checked 2026-09-30)
- UCC § 9-322. Priorities among conflicting security interests — Legal Information Institute, Cornell Law School (checked 2026-09-30)
- UCC § 9-515. Duration and effectiveness of financing statement — Legal Information Institute, Cornell Law School (checked 2026-09-30)
- UCC § 9-513. Termination statement — Legal Information Institute, Cornell Law School (checked 2026-09-30)