In New York, we receive a lot of questions from Lenders as well as Bank Attorneys concerning the validity and expiration of a UCC-1. When issuing a NY Title Insurance commitment/report often times the client will see a UCC or even multiple UCC’s filed against the subject property. UCC is short for Uniform Commercial Code. A UCC-1 financing statement is filed to protect a secured party’s interest in the collateral offered by a debtor for a loan. The UCC system gives the public notice of the debtor-secured party relationship and the collateral involved. The filing of the UCC creates a lien against the property, so the borrower may not dispose of the property, both real and personal, without paying off the debt.
The filing period of an initial UCC financing statement is 5 years. If a continuation is not filed, the initial financing statement will lapse 5 years from the original filing date. A continuation extends the filing period 5 additional years from the original filing date. A continuation may be filed up to 6 months prior to the lapse date of the initial financing statement. There are four exceptions to the initial filing period of 5 years. (New York Department of State Division of Corporations Web FAQ Page)
1. Manufactured-Home Transaction – effective 30 years
2. Public-Finance Transaction – effective 30 years
3. Cooperative Filing – effective until terminated
4. Transmitting Utility – effective until terminated
Common UCC filings are found for mechanical equipment on commercial properties, solar panels on residential properties, coin-op machines for multi-family properties and much more…
For more information or any questions as it pertains to a UCC encumbering your clients title feel free to contact us directly.
**When filing a NY State UCC use the following contact information**
New York State Department of State
Division of Corporations, State Records and Uniform Commercial Code
99 Washington Avenue
Albany, New York 12231-0001
Telephone Number: (518) 473-2492
Fax Number: (518) 474-4478