5 Pay My R-Invoice Registered Agent Services Corporate Services UCC Services Client Tools & Resources More... Naming a Secured Party: The Alternative Designation Submitted by UCS on July 16, 2021 Share A UCC-1 Financing Statement is used by a creditor to provide notice that it has a security interest in the personal property of a debtor. Quite often when a UCC-1 Financing Statement is submitted, the participants involved are identified as the Debtor and Secured Party but the UCC-1 Financing State also allows the filer to select alternative designations (See Item 7 of the UCC-1 Financing Statement). This option, used when applicable, allows the filer to further clarify the nature of the transaction and the relationship between the parties. Below are brief descriptions of how each designation can be utilized. Lessor/Lessee A financing statement can be filed in the real estate records by a lessor of fixtures to establish the priority of the lessor’s rights against a holder of a mortgage or other lien on the real property. The filing of a financing statement gives notice of whatever rights the creditor or lessor has under their loan documents or lease. A lessor is the legal owner of an asset that allows the lessee through a lease agreement to use the asset for a specified period for a set amount of rent. Consignee/Consignor The act of consignment refers to the process of sending goods from the seller to the buyer and consignor and consignee are the parties in the transaction. The consignor is the sender of the goods while the consignee is the receiver of the goods. The ownership of the goods or the consignment remains with the consignor until the consignee has paid for the goods in full. Seller/Buyer In this case, the seller is someone who sells or contracts to sell goods to a buyer. Bailee/Bailor A Bailee is a person or entity who takes temporary possession of the property of another, in this case the Bailor, in order to keep that property safe for the other. A bailment is different from a sale or a gift of property because it concerns only the transfer of possession, and not ownership. The property is also typically off-limits to the Bailee in that he is not permitted to use it while it is in his possession though this is not a requirement. Licensee/Licensor The licensee is the party that receives a license, while the licensor is the party that grants the license. Licensing agreements between private parties involve one party allowing another to use, create or sell its products or intellectual property. For more information on the Uniform Commercial Code and Financing Statements feel free to contact us at (800) 899-8648 and speak with a Client Service Representative or visit the United Corporate Services YouTube channel featuring our UCC series. Services Apostille/Legalization Company Formations Good Standing Certificates Document Retrievals Registered Agent Annual Report Filings UCC Filings UCC Searches Tax Lien Searches Bankruptcy Searches Judgement/Litigation Searches Intellectual Property/Trademark Searches Dissolution/Withdrawal Filings Mail Forwarding Remote Online Notarization Independent Director Charitable Solicitations Resources Annual Report Information Corporate Statutes Pay Delaware Franchise Tax Pay My R-Invoice UCS UCC eZFile UCS Connect UCS Podcast State Forms UCC Forms UCS Study Hall FAQ W-9 Form UCS YouTube Channel Contact Us About Us Meet the Team Careers Contact Us Paralegal Support Announcements Industry News SOS Holiday Closings Annual Report Due Dates Sign up for Industry News and Alerts Submit UCS makes no warranty or guarantee concerning the accuracy or reliability of the content at this site or at other sites to which we link. Assessing the accuracy or reliability of the information is the responsibility of the user. UCS shall not be liable for errors contained herein or for any damages in connection with the use of the information contained herein. UCS does not provide legal or tax advice. This information is for reference only. Privacy Policy | Accessibility Statement Copyright © 2021 United Corporate Services, Inc. UCS Connect is a trademark of United Corporate Services, Inc. 5.0 stars - based on 5 reviews This site uses cookies to offer you a better browsing experience. By continuing to browse the site, you are accepting the use of cookies. For more information click here. Accept