UCC Filing: Which statement is correct?

• A. Filed in the office of the Secretary of State where lessee is incorporated
• B. Filed in the county recorder's office where the equipment is located
• C. Filed with the landlord
• D. Not filed anywhere

Answer: (A)

UCC financing statements are the public notice mechanism that perfects a security interest in the debtor’s personal property. To be effective against third parties, the filing is made in the proper state-level office, typically the Secretary of State, and in the debtor’s jurisdiction. For a corporate lessee, the correct place is the Secretary of State in the state where the lessee is incorporated. This keeps the lien on the official state record and makes it discoverable in standard searches, helping establish priority against other creditors.

Filing with the county recorder’s office is generally not the correct path for a standard UCC security interest in personal property; that office handles real property records and, in some cases, specific fixture filings, not the typical perfections for movable equipment. Filing with the landlord isn’t a proper perfection method under UCC Article 9 either, and not filing anywhere would leave the interest unperfected and vulnerable to competing claims. Therefore, the correct statement is that the filing is made with the Secretary of State in the lessee’s state of incorporation.