Where is a UCC-1 financing statement typically filed to perfect a security interest?

Where is a UCC-1 financing statement typically filed to perfect a security interest?

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

Answer: (C)

A UCC-1 financing statement is filed to perfect a security interest by giving public notice of the lien. Per UCC rules, you file where the debtor is located; for a corporate lessee, that means the state where the lessee is incorporated (or organized). Filing in that state establishes perfection and priority against other creditors in the same jurisdiction. Filing in the lessor’s state or in federal court, or filing based on where the collateral sits, would not properly perfect the security interest for a corporate debtor. So the appropriate filing location is the state of incorporation of the lessee.

A UCC-1 financing statement is filed to perfect a security interest by giving public notice of the lien. Per UCC rules, you file where the debtor is located; for a corporate lessee, that means the state where the lessee is incorporated (or organized). Filing in that state establishes perfection and priority against other creditors in the same jurisdiction. Filing in the lessor’s state or in federal court, or filing based on where the collateral sits, would not properly perfect the security interest for a corporate debtor. So the appropriate filing location is the state of incorporation of the lessee.