Question
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Ken,
I am reviewing the UCC info that you included with your all in one contract
Where is this primarily used? I have NOT seen it used in Florida. Is this similar to the Notice to Owner?
Joe DelPizzo
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Answer:
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The UCC provision is in most of my Standard Form Contracts. https://www.kirschenbaumesq.com/alarm2.htm.
You can read when and how to use the provision at http://www.kirschenbaumesq.com/earticle43.htm
The Uniform Commercial Code for, UCC-1 is the filing statement that you file in a central place in your state, usually the Department of State. It's inexpensive to file and it will perfect a lien on certain property of the subscriber. If the subscriber goes into bankruptcy you will be a secured creditor and you could remove your collateral or seek its full value if the subscriber, now bankruptcy debtor, wants to keep it. The UCC-1 will also be picked up when the subscriber tries to sell his business or property. Your lien will generally have to be paid off or released before any sale takes place.
You won't routinely file the UCC-1 because it will effect your subscribers credit lines and ratings, which may irratate the subscriber who didn't realize that the UCC provisions was in the contract. However, if you become insecure about getting paid you should file the UCC-1.