I am learning about UCCs and had a question. We have a UCC filed in TN where the collateral is located. The borrower lives in Illinois. Do we need two UCC-1's filed? One in Tennessee and one in Illinois? Title company is saying yes but it doesn't make sense to me, but I am learning how these work.

Thank you.

The proper place to file is in the state where the individual resides, NOT where the property is located or where your institution is located.

Does anyone file UCCs in multiple states out of an abundance of caution? For example - you have a borrower that lives in one state but buys a boat in another state (where they also have a vacation property on a lake)?

Wouldn't a boat be titled though?

But to answer your question, if there was other personal property secured by a UCC I would only file in the single state where the individual resides.

Motors aren't titled and for outboard, they are file separately. Boats are a little tricky - they sometimes have to be perfected in peices. Planes are far trickier - more pieces, more specific rules. UCC can vary slightly per state. We often take the abundance of caution route.

Gioia gave the correct answer.