Presentation
UCC3 Financing Statement Amendments: Avoiding Loss of Lien Perfection or Priority
Read Time: 1 minThe Uniform Commercial Code-3 (UCC3) amendment is used to change information regarding the collateral and parties or indicate changes in the effectiveness of the financing statement.
While creating and filing a UCC3 record may seem straightforward, amending a UCC financing statement can be fraught with hidden risks and pitfalls. The effect of UCC3 amendments may not be what the filer expected – the termination that does not terminate or the assignment that does not assign. If not used properly, a UCC3 may not achieve the secured party’s desired result, or, worse, it can jeopardize the secured party’s ability to enforce its security interest.
Member Marshall Grodner (Baton Rouge) is co-presenting a Strafford webinar, “UCC3 Financing Statement Amendments: Avoiding Loss of Lien Perfection or Priority,” on June 20th, 2024. This presentation will brief counsel on the proper use of the UCC3 amendment form and its electronic equivalent, identify surprising traps for the unwary that can result in the loss of perfection or priority of a lender’s security interest, and offer best practices for secured parties to avoid unnecessary risks and costly mistakes.