Where do you file UCC-1 financing statement when the lessee is involved?

Where do you file UCC-1 financing statement when the lessee is involved?

• A. In the state where the collateral is located
• B. In the state where the lessee is incorporated
• C. In the state where the lessor is incorporated
• D. In federal court records

Answer: (B)

Filing a UCC-1 to perfect a security interest is determined by the debtor’s location. When the lessee is the debtor, and the lessee is a corporate entity, its location is the state of incorporation (or organization). So the financing statement should be filed in the state where the lessee is incorporated. This ensures the security interest is properly perfected against third parties in the debtor’s jurisdiction. Filing in the state where the collateral is located isn’t the rule for this situation, and UCC filings aren’t placed in federal court records. If the lessee were an individual, you would file in the individual’s principal residence.

Filing a UCC-1 to perfect a security interest is determined by the debtor’s location. When the lessee is the debtor, and the lessee is a corporate entity, its location is the state of incorporation (or organization). So the financing statement should be filed in the state where the lessee is incorporated. This ensures the security interest is properly perfected against third parties in the debtor’s jurisdiction. Filing in the state where the collateral is located isn’t the rule for this situation, and UCC filings aren’t placed in federal court records. If the lessee were an individual, you would file in the individual’s principal residence.