What is a UCC filing?

A Uniform Commercial Code filing is a type of lien. A creditor files it as part of a loan that involves collateral to ensure that he can collect on the collateral if the borrower defaults on the loan. As of 2015, UCC laws have been adopted by most states.

UCC filings are usually done as a part of loans to small businesses that involve collateral of some sort. Often the collateral consists of the equipment and inventory of the business. UCC filings are good for five years and must be renewed before that time or they are considered "imperfect" and subject to challenge by other creditors in court.