UCC glossary

The UCC filing terms that matter to lenders, in plain language — and why each one is a signal worth watching.

• UCC-1 Financing StatementA UCC-1 is the public filing a secured lender makes to perfect its security interest in a borrower’s collateral.
• UCC-3 AmendmentA UCC-3 changes an existing UCC-1 — used for continuations, terminations, assignments, and amendments to the parties or collateral.
• Continuation StatementA continuation is a UCC-3 that extends a UCC-1 before it lapses, keeping the security interest perfected.
• Termination StatementA termination is a UCC-3 that ends a UCC-1’s effectiveness — commonly filed when a secured loan is paid off.
• StackingStacking is when a business takes on multiple secured advances or loans, each perfected by its own UCC filing, layering secured parties on the same collateral.
• Lien PerfectionPerfection is the step — usually filing a UCC-1 — that makes a security interest enforceable against other creditors and sets its priority.