A UCC-1 (or a UCC-Uniform Commercial Code-1 statement) is a legal notice filed by a creditor to declare their right to seize certain assets of a debtor who defaults on a loan. When one files a UCC-1 statement through the Secretary of State, it tells the public that specific property has been pledged as security for an existing debt.
For example, say someone wants to open a drive-in movie theatre and needs to borrow money from a creditor for a projector and stereo equipment. The creditor will record a UCC-1 and describe the equipment that secures the loan. If the borrower does not pay the loan, the creditor can seize and sell the equipment to recoup loan proceeds. If the borrower has multiple creditors, whichever creditor filed a UCC-1 (or filed it first) will receive first-ranking security on their assets.
It is easy to file a UCC-1 through Fast Track Filing. Follow the guide below to see how it’s done.
Step One:
First, go to https://filings.sos.iowa.gov/.
You will need an account to file anything on Fast Track Filing (excluding Biennial Reports). To learn how to create an account, click here. Once you are logged in, you will see a “Home” screen that displays the Fast Track Filing Communication Center. At the top of the page, there will be a navigation menu—click on “UCC Filings”.
Step Two:
A drop-down menu will appear. Click on “File UCC”.
Step Three:
From here, you will be redirected to the “UCC1” page. This is where you will input all the necessary information to file your UCC1, so take caution to make sure all the information is correct.
First, fill out the “Filer Contact Information” section. This is an optional section where you may provide your contact information.
Next, fill out the “Send-Acknowledgement to:” section of the form.
Step Four:
Next, you will fill out the “Debtor’s Name” information. In this section, you will need to provide the following:
- Type (Are they an organization or an individual?)
- Either the Organization Name or the Individual’s Name
- Mailing Address (The organization’s principal office, or the individual’s residential address)
If there is more than one debtor, you may choose to add multiple debtors at the bottom of the section. (“Add Another Debtor” or the + sign).
Step Five:
Next, you will fill out the “Secured Party’s Name” information. In this section, you will need to provide the following:
- Type (Are they an organization or an individual?)
- Either the Organization Name or the Individual’s Name
- Mailing Address (The organization’s address, or the individual’s residential address)
If there is more than one secured party, you may choose to add multiple parties at the bottom of the section. (“Add Another Secured Party” or the + sign).
Step Six:
Finally, you will need to fill out the Collateral, Financing Statement, Ag Lien/Non UCC, and Optional data. Fill out the following:
- Collateral (The specific assets that are covered in this document)
- Special Collateral Designation (if applicable, either in a Trust or administered by a decedent’s personal representative)
- Special Financing Statement Designation (if applicable)
- Ag Lien/Non UCC Designation (if applicable, either an Agricultural Lien or a Non-UCC Filing)
- Alternative Designation (if applicable)
- Miscellaneous (Under certain circumstances, additional information not provided on the financing statement may be required. Use this space to provide such additional information. Otherwise, leave this space blank.)
- Optional Filer Reference Data (You may enter any identifying information [e.g., secured party’s loan number, law firm file number, debtor’s name or other identification, state in which form is being filed, etc.] that the filer may find useful)
- Any additional PDF attachments
Step Seven:
After you have filled out all required forms, select “Review and Pay”. You will now be given the option to review your filing, as well as add payment information. Please make sure that there are no errors in your UCC-1 Agreement.
Step Eight:
After you are finished, click “Add to Cart” at the bottom of the page. From here, you can add another filing or check out. If your submission was successful, you will see the text “Filing Submission Status: Success” on your screen.
Congratulations! Your filing has been successfully filed. The submission will be reviewed by the Secretary of State’s office, and you will be notified by email when the filing is filed.
Once the submission is complete, you will be able to see your filing in your Dashboard. To access your Dashboard:
- Visit Fast Track Filing (iowa.gov)
- Sign in with your Username and Password
- Go to “UCC Filings” and then “Dashboard”
You will see a category named “Completed Filings”, and your UCC-1 will be listed there.