UCC Filings And Your Commercial Assets

10/26/2026 09:47 AM Mark Goodman

There are so many intricate and complex laws that govern commercial property acquisition, and most savvy investors ensure they have a team of professionals in their corner to guide them during the buying and selling process to ensure not only that their commercial moves are legal, but that they are in their best financial interests. Connecting with a team that understands Uniform Commercial Code (UCC) filings is one of those complex matters that cannot be overlooked.

The UCC code is a collection of laws that have been adopted by all 50 states that govern commercial and interstate business transactions. It covers a wide variety of aspects associated with a commercial asset, like equipment, inventory and money owed by customers. These are public filings that alert other creditors and vested parties about the claim on specific assets. By being public, it ensures that commercial businesses can’t use the same assets in order to secure multiple forms of financing. In the event a commercial business defaults on a loan, a UCC filing determines the order in which creditors can satisfy their claims from the established collateral.

These UCC filings are essential for protecting the interests of both borrowers and lenders in a commercial transaction. Here’s how:

For Lenders - A UCC filing minimizes their risk of losing their security interest in an investment in the event the borrower defaults or experiences financial distress.

For Borrowers – A UCC filing allows them to use assets as collateral to secure additional funding or to pursue specific financial opportunities. For example, commercial owners can use business equipment or tenant lease agreements as collateral in a UCC filing.

Being aware of UCC filings is essential because failing to comply with the requirements can lead to the creation of a lien on your asset, limiting your ability to obtain additional credit or complicating the selling process.

UCC filings are just one aspect we’ll investigate when helping someone look into a potential commercial property. The existence of these filings does not mean that a title lien is in place, but we will clarify their existence and ensure they are properly cared for before you become a new owner so that old debt does not become your problem after the purchase.

UCC filings can be complex and hard to understand, but they can also bring some additional risk into the commercial acquisition, and we want to remove as much risk as possible for our clients. For more information about UCC filings, or for help discovering their existence and resolving them ahead of closing, connect with the team at Commercial Partners today at (612) 337-2470.