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 Utah, when a lender provides a loan to a business and secures the loan with the business's assets as collateral, they often use a UCC-1 financing statement to establish their priority interest in those assets. The UCC-1 is filed with the state, typically with the Utah Secretary of State's office. This filing serves as a public notice that the lender has a security interest in the specified assets, alerting potential buyers and subsequent creditors to the lender's claim. Article 9 of the Uniform Commercial Code (UCC) regulates these types of secured transactions. The types of assets that can be used as collateral and are covered under a UCC-1 filing include vehicles, office equipment, inventory, investment securities, accounts receivable, machinery, letters of credit, and other tangible items of value. The proper filing of a UCC-1 is crucial as it determines the legal priority of creditors' claims in the event of default or bankruptcy.