Does a UCC-1 Financing Statement Expire?
Full Question:
Does a filed UCC 1 remain valid indefinitely or is a renewal required at some interval of ime?
04/27/2011 |
Category: Finance |
State: Texas |
#24731
Answer:
Normally a UCC-1 Financing Statement expires five years from the date and time of filing as indicated on the UCC-1 form. However, if a loan extends beyond that period, a lender is normally files a “Continuation Statement” renewing the original UCC-1 filing for another 5 years.
Sometimes a lender will renew their UCC-1 filing if they make a new loan to a business before the five years is up. The new loan causes the clock to start running its 5 years again.