Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

UCC-1

Definition

A legal document that a creditor (i.e., seller) files to give notice to the public that it has a security interest in the property of a debtor (i.e., buyer).

See Also

Promissory note, security agreement, UCC.

Tips

A UCC-lien gives the lender (i.e., seller) the legal right to repossess property if the buyer fails to make the payments in a timely manner. If the seller of a business is financing the sale, the seller files a lien (a UCC-1 statement) in the appropriate jurisdiction, normally the county or state. This gives notice to the public that the seller continues to hold a security interest in the assets of the business until the note is paid in full.

Related Resources

M&A Seller Financing: A Complete Guide

M&A Seller Financing: Handling a Buyer Default