Financing Statement Law and Legal Definition
Financing statement is a statement that contains information about a security interest in collateral used to secure a debt. It is filed with the secretary of state or other designated public official and it serves as public notice to any interested parties that a lender has established a security interest in property pledged as collateral. The document is time stamped, the filing date is noted, and a file number is assigned, securing the lender's claim to the assigned collateral. The purpose of the statement is to put other creditors, or purchasers, on notice that the security interest exists and will remain on the property even if sold and even if another creditor loans money against the same property. Under Article 9 of the Uniform Commercial Code, a financing statement must state the names of the debtor and the secured party, the address of the secured party, the address of the debtor, indicate the items of collateral and should be signed by the debtor.
