Does a UCC-1 Financing Statement Expire?

Q: Can you continue an expired UCC?

No, once a UCC filing has expired, it cannot be continued. The lender must file a new UCC-1 Financing Statement to establish a new security interest. It’s important to file the Continuation Statement before the original filing expires to avoid losing the secured interest.

Q: What makes an UCC invalid?

A UCC filing can be deemed invalid for several reasons, including incorrect information, failure to properly file or renew, or if the secured obligation has been satisfied. Additionally, if the debtor does not exist or the filing is not authorized, it may also be considered invalid.

Q: How long are UCC-1 filings good for?

A UCC-1 filing is generally valid for five years from the date it is filed. To keep it valid beyond this period, a lender must file a Continuation Statement before the expiration date to renew the filing for an additional five years.

Full question:

Does a filed UCC 1 remain valid indefinitely or is a renewal required at some interval of ime?

Category: Finance
Date: 04/07/2025
State: Texas

Answer:

Normally a UCC-1 Financing Statement expires five years from the date and time of filing as indicated on the UCC-1 form. However, if a loan extends beyond that period, a lender is normally files a “Continuation Statement” renewing the original UCC-1 filing for another 5 years.

Sometimes a lender will renew their UCC-1 filing if they make a new loan to a business before the five years is up. The new loan causes the clock to start running its 5 years again.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Does a UCC fixture filing expire?

Yes, a UCC fixture filing also typically expires after five years, similar to a UCC-1 Financing Statement. To maintain the validity of the fixture filing beyond this period, a lender must file a Continuation Statement before the expiration date. This renewal extends the filing for another five years.