Last Updated on January 2, 2022
An Indiana UCC (Uniform Commercial Code), also known as a UCC-1 Financing Statement, is a lien filed by a creditor to protect their interest when making a loan. This lien exists until the debt is paid for and can be placed on any personal property such as vehicles, equipment and more. A UCC filing does not apply for real estate. UCC filings protect lenders should the borrower stop paying on the debt or declare bankruptcy. The UCC provides documentation for the lender and allows the ability to foreclose or force the sale of the property to pay back the debt.
The ability to do a UCC search is important because if multiple creditors have a lien on the same property and the debtor tries to additional mortgages on the same property, those creditors would be looking at a loss as the collateral would likely not have enough value to satisfy the debts.
How does the UCC filing process work?
Once approved for secured financing, a creditor files a UCC-1 Financing Statement with the Indiana Secretary of State which creates a lien against the collateral.
The Indiana UCC Financing Statement contains:
- Debtor name and address
- Creditor name and address
- Information about the collateral.
All UCC filings in Indiana will go through the Secretary of State’s office except for collateral that is timber to be cut or extracted minerals. These filings are done through the county recorder’s office in the county where the collateral is located.
UCC liens are active in Indiana for 5 years from the date of filing in most cases. Filings are renewable for long-term debts and filings can be amended to update lender’s position of the secured collateral.
How much does an Indiana UCC search cost?
A UCC-1 Financing Statement search is free if a simple search is done. If you want an image of the statement, the cost is $20.
How to search for a UCC filing in Indiana
Step 1 – Visit the Indiana Secretary of State’s website
Step 2 – Click on “Search Now”
Step 3 – Log into your INBIZ Access Indiana Account
Step 4 – Click on UCC Search, then select by the way you want to search either by the debtor’s personal name, business name, a keyword or file number.