This is the fourth installment of a series of articles on the UCC and Article 9.
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.
WHERE TO FILE
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.
PERFECTING THE PMSA
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