The New York Uniform Commercial Code governs transactions in which personal property is used as security for a loan or extension of credit.
Under the law, a lender files a Financing Statement to take a security interest in the collateral identified in the statement. Financing Statements are usually filed with the New York State Department of State.
If the Financing Statement covers collateral that will be extracted or removed from real property, such as timber, or goods that are or will become fixtures affixed to the land, the statement must be filed in the real property records in the county where the property is located.
The filing must include:
- A legal description of the real property related to the collateral, including the book and page in a deed or mortgage
- The name of the record owner if the debtor does not have an interest of record in the real property
Forms and further information can be obtained on the NYS UCC Forms Page.
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