3JM Company Inc.

Published Articles by David Balovich

Published in: Creditworthy News
Date: 9/23/98

This is the fourth installment of a series of articles on the UCC and Article 9.

As stated previously the prompt filing of the security agreement is very important. All states require that both debtor and secured party sign the initial filing. Filing the document is often referred to as perfecting the agreement.

Perfection can be accomplished in one of two ways. Filing the security agreement or filing the financing statement (UCC-1 form). Most filing officers prefer the financing statement as it is easier for them and less paper to handle.


The filing is done where the debtor is located. However, different states have different locations to file which is determined by the type of collateral being pledged. Some states require filing at the state capitol; others in the county where the debtor has its residence or place of business and some require filing in both locations. A few states, most notable Georgia, Kentucky and Louisiania require that filings only be done at the county or parish.

always check with the UCC division of the Secretary of States office to determine where your filing should be perfected.


The perfection of the PMSA requires additional steps beyond filing.

Secured creditors must be notified in writing that a PMSA is being perfected. The names of existing secured creditors is obtained through a UCC search. This is done by writing to the UCC division of the Secretary of States office and/or county recorder if filing is done at the county level and requesting a list of secured creditors names and addresses. The letters should be sent certified mail return receipt requested.

New debt must be provided the debtor within a certain period of time usually within 10-30 days. Each state has different days so it is important to check to see what the time period is. In the event these additional steps are not taken within the time required the PMSA defaults to a standard security filing.

I wish you well

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