Under UCC filings, what is the typical term of a financing statement, and how is it extended?

• A. Ten years with automatic renewal
• B. Five years, extendable by continuation statements
• C. Indefinite until terminated
• D. One year

Answer: (B)

The key idea is that a UCC financing statement lasts five years. To keep the security interest perfected beyond that initial five-year term, a continuation statement must be filed within the allowed window before the lapse date. When a continuation is filed, the term is extended by another five years from the lapse date, and this process can be repeated to maintain perfection. That’s why the best answer is that the typical term is five years and it is extendable by continuation statements. The other options don’t fit because there isn’t a perpetual, one-year, or automatic-ten-year arrangement for these filings.