Generally, individuals and businesses complete and file Uniform Commercial Code forms when they are parties to a commercial transaction between a secured party and a borrower, according to the New York State Department of State. One exception is the purchase of a cooperative interest. In such transactions, the lender, or secured party, typically files a UCC financing statement to protect its interest. The first step in filing a UCC is determining where to file.Continue Reading
The Uniform Commercial Code is a comprehensive, uniform and accessible body of rules that modernize and simplify states' commercial transactions laws, explains the New York State Department of State. The UCC allows commercial practices to continue expanding through usage, custom and agreement of the parties. UCC Section 9-501, Filing Office, shows people where to file their UCC financing statements. An initial financing statement is effective for five years from the date of filing.
To extend the financing statement's effective date, an individual or business must file a continuation, explains the New York State Department of State. If no one files a continuation, the initial financing statement lapses five years after the initial filing date. A continuation extends the filing period for an additional five years from the original date of filing. Parties can file a continuation up to six months before the date on which the initial financing statement lapses. As of 2016, exceptions to the five-year initial filing period include public finance transactions and manufactured home transactions, which are effective for 30 years, and transmitting utility transactions, which are effective until they are terminated.Learn more about Managing a Business