When a lender makes a loan to your business, and in the loan agreement takes a security interest (as collateral) in one or more of your assets, it may include a completed UCC-1 financing statement (UCC-1). A UCC-1 is a document that, when properly filed with the state (often the secretary of state’s office), provides notice to potential buyers of those assets, and notice to future creditors of your business that the earlier lender has a priority interest in those assets. Article 9 of the Uniform Commercial Code governs business or commercial transactions (loans, extensions of credit) that are secured by collateral, and provides for use of the UCC-1 filing. Vehicles, office equipment and fixtures, inventory, investment securities, accounts receivable, machinery, letters of credit, and other moveable, tangible items of value often serve as the collateral for a UCC-1.

In Hawaii, when a lender provides a loan to a business and secures the loan with the business's assets, they often use a UCC-1 financing statement to establish their interest in the collateral. The UCC-1 is filed with the state, typically with the Department of Commerce and Consumer Affairs (DCCA) Business Registration Division, which serves as the central filing office in Hawaii. This filing serves as a public notice that the lender has a priority interest in the assets listed as collateral, which could include vehicles, office equipment, inventory, investment securities, accounts receivable, machinery, and other tangible items. The process is governed by Article 9 of the Uniform Commercial Code (UCC), which standardizes the rules for secured transactions across states. Filing a UCC-1 helps protect the lender's rights in the collateral against claims by third parties and ensures their priority in the event of default or bankruptcy of the borrower.