UCC Financing Statement

[cbjr]

I am a bit confused about the need to file a UCC Financing Statement (NC). We purchased the boat for cash from the seller who had a lien on it.

We were given the paperwork form the lienholder to file and did so but it was rejected - no fees were sent and the Secured Party name and address were not included.

Can someone explain this form and how it would relate to my particular situation. I suspect we wouldn't need to file anything - as it seems to be all about tracking financing of personal property, but the intent is not all that clear.

TIA, Chuck

 

[JediJD]

A UCC1 is a statement from a secured party against a private property interest. It says, in effect "the debtor owes me money and I am secured through this personal (or business) property". I don't understand why you would be filing a UCC1 if you paid cash.

 

[chuck1]

Could it have been a UCC3 that is used to remove the UCC1 when it has been paid off???

 

[Woody]

Normally if this is a state that issues boat titles security interests are listed on them. There would be no need for UCC filing. It's to small to be documented...do you have a state title? If not documented and no state title then UCC filing to record a secured interest would make sense. Chuck1 likely has the answer.

 

[cbjr]

Could it have been a UCC3 that is used to remove the UCC1 when it has been paid off???

Shouldn't a UCC3 have been submitted by the lending insititution?

We received the paperwork (UCC and UCC Amendment) from the previous owners financing company (pre-filled out) saying we need to sign and file them with the state - so we did- but didn't really understand the jist of what was going on in this case.

We do have a state title (liens were released and everything was properly transferred).

Thanks everyone for your input - I was thinking we shouldn't have to file a UCC - but I really had never seen one before and google search was only somewhat helpful in explaining the form. I just didn't know if there was something we still needed to do - there is always a gotcha it seems.

Chuck