3JM Company Inc. . . This is the fourth installment of a series of articles on the UCC and Article 9. As stated previously the prompt filing of the security agreement is very important.
All states require that both debtor and secured party sign the initial filing.
Filing the document is often referred to as perfecting the agreement. Perfection can be accomplished in one of two ways. Most filing officers prefer the financing statement as it is easier for them and less paper to handle. The filing is done where the debtor is located. However, different states have different locations to file which is determined by the type of collateral being pledged.