Perfect Your Security Interest By Filing Before A Closing

By: Michael Smith, Lerch, Early & Brewer (Maryland, USA - TAGLaw)

In most commercial loan transactions, a lender will secure a loan by filing a Uniform Commercial Code (UCC) financing statement to perfect its security interest in the borrower’s personal property. A loan is perfected when the lender receives priority over other creditors wishing to obtain a lien against the collateral. Typically, the lender files the financing statement after the loan has closed. However, it is possible to file a financing statement pre-closing, provided the lender obtains the borrower’s prior written authorization. A lender may want to pre-file a financing statement if the lender is concerned that an intervening lien may be filed during the gap of time between when a UCC lien search was last conducted and the time that the loan 

Read the full article at, "Perfect Your Security Interest By Filing Before A Closing."

Michael Smith, an attorney with Lerch, Early & Brewer, focuses on the structuring, negotiation, documentation, due diligence and closing of commercial lending transactions. For more information on pre-filing UCC financing statements, and other closing and documentation 
issues, contact Michael at (301) 657-0166 or 
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This article originally appeared in Lerch Early's Commercial Lending Bulletin. To subscribe, visit