Reed Smith Client Alerts

When revised Uniform Commercial Code Article 9 was adopted in 2001, the thought was that filing a UCC-1 Financing Statement with a single Secretary of State would create a lien on all the personal property collateral described in the UCC-1 anywhere in the United States and with a lien priority that could be determined by analyzing the UCC filings with that Secretary of State—i.e., there would be one place to search. As good as that idea seems, unfortunately, it is only partly true. At least one state, California, has non-Commercial Code laws that create a significant risk for a personal property secured lender relying on California personal property collateral.