Security interests in personal property are governed by the Uniform Commercial Code (“UCC”). A security interest is an interest granted in personal property to secure payment or performance of an obligation. For example, a business owner borrows money for its business and grants a security interest to the lender in the owner’s inventory and equipment. Often, the UCC requires filing of a form with the appropriate state agency in order to “perfect” that security interest against the claims of third parties. In the state of Washington, the appropriate state agency is the Department of Licensing. The appropriate state agency will vary from state to state.
The International Association of Commercial Administrators (“IACA”), a professional association of government administrators of business organization and secured transaction registries at various governmental levels, recently modified some of the UCC forms that are filed with the government, including the UCC-1 financing statement, a very commonly filed form. The forms became effective July 1, 2023. Some states have set dates after which only the new forms will be accepted for filing. Currently, the Washington Department of Licensing is encouraging customers to use the newly revised forms, but is accepting for filing the older forms as well as the newly revised forms and does not have a date after which it will only accept the revised form.
If you need assistance with these issues, contact Per Oscarsson or one of the other attorneys in Beresford Booth’s Business and Real Estate Group.
To learn more about Updates on Uniform Commercial Code Forms, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.