The "UCC Status" field is a value-added field provided by EDA during our data enhancement process. The status field allows users to filter their data by sale, lease, rental, refinance, wholesale, or termination. Typically, the UCC-1 filing does not specify a status, so EDA's analyst use our database and industry knowledge along with the UCC-1 filing data to assign the appropriate status. On the other hand, the termination is defined when a UCC-3 is filed against an existing UCC-1 (read more below).

Sale
The status of “sale” is the default assignment status for a UCC-1 security agreement and represents 68% of the activity EDA reports to its customers. The status assignment of “sale” is made when there is no other indication of status on the UCC-1 document. This status represents an agreement between the secured party and debtor where capital goods are being held as collateral as part of a term finance agreement.

Lease
The status of “lease” is assigned when a lease agreement is indicated on the UCC-1 document, or when the secured party is a leasing company. The status of “lease” is assigned on about 8% of UCC-1 filings EDA reports to its customers.

Rental
The status of “rental” is assigned when a rental agreement is indicated on the UCC-1 document. Most rental agreements are for short term use of equipment, and seen most prevalently in the construction industry where a distributor is the secured party. The rental status assignment is used on about 5% of UCC-1 filings.

Refinance
13% of the equipment activity EDA reports involve repeat UCC-1 activity, having been involved previously in a security agreement of some type. When EDA is able to match the history of a specific manufacturer, model, serial number and buyer combination with previous UCC-1 history, the status of “refinance” is assigned.

Wholesale
A status of “wholesale” is assigned when the debtor is found to be an authorized distributor for an OEM. A UCC-1 filing which involves an authorized distributor as the debtor is typically an indication of floor planning, or the financing of inventory for sale by the distributor. The wholesale assignment is made to 5% of the UCC-1 activity EDA reports to its customers.

Termination
An original UCC-1 financing statement is effective for five years from the date of its filing and is automatically terminated after the five year period. A UCC-1 can be extended for another five years if a continuation statement is filed within months 54 - 60. Conversely, when a financing agreement is paid in full prior to the five year period, the lender should file a UCC-3 to terminate the existing UCC-1 filing and remove the lien.

In January 2009, EDA began capturing UCC-3 terminations. This additional data became available to our customers in late 2009. While EDA acquires all UCC-3 terminations from each state, we only report those terminations having a previous UCC-1 filing in our database are reported. Because the termination document references the original UCC-1 (UCC Transaction ID), all equipment listed under the original filing is terminated when a UCC-3 is filed. Learn more about terminations.

Revision Date:1/7/2010