Fixture Filing under UCC
A Fixture Filing under UCC refers to the process of recording a security interest in personal property that has become so closely associated with real property that it is considered a fixture. Under the Uniform Commercial Code (UCC), fixtures are typically items that were once movable but have been affixed to a property in a way that they cannot be easily removed without damaging the property.
To create a Fixture Filing, a creditor must file a financing statement with the appropriate state authority, usually the Secretary of State’s office, which includes specific information about the debtor, the secured party, and a description of the fixture. This filing establishes the creditor’s legal claim to the fixture in the event of default by the debtor.
For example, if a business purchases an expensive HVAC system and installs it in a commercial building, that system may be considered a fixture. The business may need to file a Fixture Filing to secure its interest in the HVAC system against other creditors, ensuring that it has the right to reclaim the system if the business defaults on its loan or lease agreement.
Overall, a Fixture Filing under UCC plays a crucial role in protecting the rights of secured creditors and clarifying the status of fixtures in relation to real property transactions.
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