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Statement for UCC Asset Description

Answered by: 
Kathleen Blanchard

Question: 
We are a small bank that does very little lending that requires a UCC filing. However, we have a request to finance a business that has inventory and A/R. I remember (from long ago seminars) a blanket statement that is noted in the UCC as well as specific asset description. What is this statement? What do I need to state on the UCC other than the specifics of the assets?
Answer: 

This is a very serious issue. It would be well worth it for the bank to pay for a few hours of an attorney's time to get the proper language and filing instructions for this important process. Not to do so puts the bank at risk of having a loan that is unsecured. Given that your bank does not have these instructions on hand, I can only recommend conferring with counsel.

First published on BankersOnline.com 9/17/12

First published on 09/17/2012

Filed under: 
Lending
Filed under lending as: 
Statement
UCC

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