In a typical UCC filing, where should the financing statement be filed to perfect a security interest in equipment leased to a debtor organized in a single state?

• A. In the debtor's county clerk office.
• B. In the secretary of state office of the debtor's location state.
• C. In the debtor's local zoning office.
• D. In the secured party's state of incorporation.

Answer: (B)

In UCC terms, you perfect a security interest by filing a financing statement in the state where the debtor is located. When the debtor is organized in a single state, that location is the state of the debtor’s organization, so the financing statement should be filed with the Secretary of State in that state. Filing at the secretary’s office creates a centralized, statewide public record that third parties can search to learn about the security interest, helping establish priority.

Filing in the county clerk’s office isn’t the standard method for perfected security interests in most cases, and local zoning offices handle different records. Filing in the secured party’s state of incorporation wouldn’t give proper notice to others about the debtor’s collateral.