UCC Financing statement

[LFP57]

Hello Everyone,

Recently purchased an LX2610, I financed half of it through Kubota Credit, I've financed many things over the yrs, yet I've never received anything from the State's Uniform Commercial Code. Does anyone have any idea why I'd receive an UCC financing statement from my state??

 

[MoKelly]

Since you financed the tractor, Kubota had to file the UCC financing statement to perfect its interest in the machine in case you don’t pay in the future. This allows the lender to take possession of the tractor and sell in case of default.

It is also public notice that there is a lien on the tractor should you try to sell it while you still owe Kubota money.

It’s no big deal. It’s common on vehicle loans.

MoKelly

 

[two_bit_score]

Most motor vehicle liens are perfected by the lien holders name being placed on the title. States where the lien holder actually holds the title are a little different but generally the same. Tractors don’t have “titles” per se so they use the UCC filing.

You will also want to make sure the file a release of lien when you pay it off.

I saw once where a customer had bought a baby grand piano brand new and the UCC was never released even though they paid it off. I don’t think they even knew about the UCC. It caused some delay in them getting paid when the piano was damaged in a fire.

 

[LFP57]

Since you financed the tractor, Kubota had to file the UCC financing statement to perfect its interest in the machine in case you don’t pay in the future. This allows the lender to take possession of the tractor and sell in case of default.

It is also public notice that there is a lien on the tractor should you try to sell it while you still owe Kubota money.

It’s no big deal. It’s common on vehicle loans.

MoKelly

I've financed many vehicles over the the last 65 yrs and I've never received any thing like this from other lenders so i don't know that's it that common, maybe because it doesn't have a vehicle title?

 

[LFP57]

Most motor vehicle liens are perfected by the lien holders name being placed on the title. States where the lien holder actually holds the title are a little different but generally the same. Tractors don’t have “titles” per se so they use the UCC filing.

You will also want to make sure the file a release of lien when you pay it off.

I saw once where a customer had bought a baby grand piano brand new and the UCC was never released even though they paid it off. I don’t think they even knew about the UCC. It caused some delay in them getting paid when the piano was damaged in a fire.

That makes sense, it doesn't have a title, thanks.

 

[MoKelly]

I've financed many vehicles over the the last 65 yrs and I've never received any thing like this from other lenders so i don't know that's it that common, maybe because it doesn't have a vehicle title?

I think that is correct.

MoKelly

 

[Torvy]

My teams did a bunch of UCC filing while I was doing small business lending. It is exponentially more common in that space. The lack of title is definitely why. As a side note: some states title trailers, some do not.