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(Initial) UCC 1 (Uniform Commercial Code 1)

Definition:

A Uniform Commercial Code 1 or a UCC 1 Financing Statement is a legal document created when some property is used as collateral at the time a loan is secured.

What is a UCC1 form:

A UCC 1 indicates that the bank has an interest in the property. Thus, if the borrower decides to sell the property before the loan is paid off, then the new owner is liable for the outstanding balance. At the same time, the document gives the lender the right to seize the property in case the borrower defaults on the payment.

When a notice of "UCC 1 Termination" appears, it means that the borrower paid the debt in full and the UCC filing was removed. An "Initial UCC 1" is the first financing statement filed; any changes to this Initial UCC 1 can be recorded later.

References:
http://www.findlegalforms.com/articles/form-encyclopedia/what-is-a-ucc1-financing-statement
http://www.findlegalforms.com/articles/form-encyclopedia/what-is-a-ucc1-financing-statement
http://www.nyc-pa.org/resources/Documents/CLE%20%20UCC%20Article%209%20Filing%20Basics.pdf

Disclaimer:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.