A Uniform Commercial Code filing, is a legal document that a lender files with the secretary of state to establish their legal right to assets that a borrower uses to secure a loan. The filing serves as a public notice that the lender has a lien, or interest, against the business asset used to secure the financing. The filing allows the lender to formally lay claim to collateral that a debtor pledges to secure their financing.
The filing can also notify other creditors about a debtor's assets used as collateral for a secured transaction. The filing serves as a public notice that the creditor has the right to take possession of the assets as repayment on the underlying debt.