| 1) When did the new law become effective? |
| The new law became effective July 1, 2001. |
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| 2) How many new forms are there? |
| The new forms include the UCC-1 Financing Statement, UCC-1ad Financing Statement Addendum, UCC-3 Financing Statement Amendment and UCC-3ad Financing Statement Amendment Addendum. |
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| 3) Are the new forms available? |
| They are available on our website by going to our UCC Files and Forms Section. The forms are interactive, so they can be completed online and then printed out. |
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| 4) Can the old Georgia form still be used? |
| No. The old Georgia form should be rejected. |
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| 5) Is there a change in where people file UCCs? |
| Yes. The biggest change is for the filing party. The filing party files the UCC in the state where the debtor resides (for an individual) or the state where the debtor, or registered partnership is incorporated or in the District of Columbia if the registered organization is not organized under the laws of the United States (11-9-307). Georgia continues to be a local filing/central indexing state, so initial UCC Financing Statements should be filed with a Clerk of Superior Court in any county. |
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| 6) What do we have to do differently insofar as sending UCCs to the Authority? |
| There is no change in the daily processing by your office of the UCCs. You should still scan them to the Authority within 24 hours of receipt. |
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| 7) In the past there were 7 reasons to reject a UCC filing. Has that changed? |
| Yes. Follow this link here for a more detailed answer. |
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| 8) What happens if I accept a UCC filing that should have been rejected according to the list of reasons to reject? |
| Whether the secured party has secured perfection through filing depends on many factors but filing alone does not equal perfection. Bottom line: the secured party is responsible for filing correctly, so the clerk is not harmed, it is the filing party's responsibility to get the filing right. |
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| 9) Does the Authority provide a standard rejection form that clerks can use? |
| Yes. It is available in the UCC Files and Forms Section of the site. |
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| 10) The last name of the debtor on a financing statement is not decipherable. Do I reject the UCC? |
| Yes. It is the filing party’s responsibility to make sure the name is decipherable. The forms should be typed or computer generated, not handwritten. |
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| 11) If the debtor's address is not on a UCC, can I file it? |
| The debtor’s address is required; so if it is missing, the document should be rejected. |
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| 12) Does the taxpayer/social security number have to be specified on the UCC (in Block 1d)? If it's not, is this a reason for rejection? |
| No, the taxpayer ID and/or the individual’s SSN is not required. The absence of these numbers is not a reason to reject a filing any longer. |
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| 13) Does a UCC still have to be signed by the debtor? |
| No. Signatures are no longer required. |
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| 14) If a UCC comes in and the name is entered wrong and my staff knows it, what do we do? |
| It is the responsibility of the filing party to get the name right, so if the filing fee is correct, you can accept it as presented, or you can inform the filing party of their error and let them correct the document. |
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| 15) What is the correction statement? And how does it affect me? |
A correction statement is filed usually for one of two reasons: 1) used by a filing party if they feel there was a mistake indexing the names.(This type of correction statement does not carry a filing fee, but should be transmitted to the Authority for corrective action) or; 2) if they feel that the UCC was wrongfully filed. This type of correction statement carries the regular UCC filing fee. The Clerk's office should assign a UCC filing number to this type of correction statement.
The Correction Statement must (1) identify the record to which it relates by file number; 2) indicate that it is a Correction Statement; (3) provide the basis for the person's belief that the records is inaccurate or wrongfully filed. We recommend that the filing party use the Correction Statement provided on our website. |
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| 16) Has the fee for filing changed? |
| The basic filing fee has not changed. It is still $10 and $2 per additional page. |
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| 17) The “old” UCC-2 was used for real estate-related UCC filings and we charged a $5 filing fee. Now I understand it has been eliminated. What is the process for filing a UCC real estate-related filing and what fee do I charge? |
| The filing party should file a UCC Financing Statement (filing fee of $10), check Block 6, add a UCC Addendum (filing fee of $2 per addendum), check block 13 and describe the real estate in Block 14 (and block 15 if applicable). This filing is then filed and recorded in the Real Estate records, not the UCC records. To mimic the "old" UCC-2 notice filing, the filing party would also file the record in the UCC records. To accomplish this, the filing party should file another original UCC Financing Statement (but do not check block 6 on this financing statement) add the UCC Financing Statement Addendum and file with the clerk of superior court in the UCC records. This filing would be transmitted to the Authority for inclusion on the UCC central index. |
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| 18) What is the total fee for a UCC filed with an addendum? |
| If there is only one addendum then the filing fee would be $12($10 +$2). The addendum is basically an attachment. |
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| 19) Is the fee for an addendum the same as an attachment? |
| Yes, $2 per addendum page. |
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| 20) If a party overpays for filing a UCC, do I refund the overpayment? |
| No. Go ahead and accept the filing and the payment. Refunds of overpayments are governed by local policy. |
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| 21) Will UCC-3s still be used to terminate, amend, or assign UCC forms? |
| Filing parties will use the new UCC-3 Financing Statement Amendment form to accomplish this. |
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| 22) I see in block 7 of the UCC Financing Statement form there is a request for a search. What do I do if I get a form where this is checked because I thought the Authority did the UCC-11 Search? |
You are correct. The Clerks’ Authority performs the UCC-11 search. It is suggested that you contact the filing party and inform them that they need to contact the Clerks’ Authority to have the search performed or direct them to the Authority website to obtain the UCC-11 Information Request form from our
UCC Files and Forms Section. |
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| 23) If the financing statement covers crops, etc., which used to require the filing of a UCC-2, how do I know to file the UCC in the real estate records? |
| Block 6 of the UCC Financing Statement should be checked and we also are suggesting that the filing party include a letter indicating that the filing should be filed and be recorded in the real estate records also. |
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| 24) If a debtor company does business in Georgia but is incorporated in another state, where would the UCC be filed? |
| It would be filed in the state of incorporation of that business. |
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| 25) What is meant by jurisdiction of organization in block 2f? |
| It is the state in which the debtor (if it is a business/organization) is incorporated or registered with the Secretary of State. |
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| 26) Is there a requirement that blocks 1&2e and 1&2f be completed? |
| Yes, if the debtor is an organization. |
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| 27) Is there a requirement that blocks 1&2g be completed? |
| The inclusion of the organizational ID#, blocks 1 & 2g, is optional. |
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| 28) Down at the bottom of the UCC form in Block 5, there are alternative designations. If any of the blocks are checked, what do I do when processing the UCC? |
| These designations (lessee/lessor, consignee/consignor, bailee/bailor, etc.) are for use by the filing party and have no impact on the processing of the document by the clerk’s office personnel. |
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| 29) Will my office be required to return acknowledgement copies even if block B is not completed? |
| If Block B on the form is not completed, there is no way for the filing officer to know where the acknowledgement should be sent, so in that case the filing office would not be required to send an acknowledgement copy. According to code section 11-9-523, if a filing party provides a copy of the original filing, then the copy should be stamped with the recording information and returned to the filing party. We are also suggesting to the filing party that a self-addressed stamped envelope be included along with the filing. |
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| 30) How will filing parties submit additional debtor names and secured party names? |
| Filing parties can use the UCC Addendum or a blank piece of paper. If a blank piece of paper is used, the filing party should follow the same format as the addendum form. It is suggested that the Clerk stamp each page with the file number. |
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| 31) Does block 18 on the addendum (UCC1Ad) pertain to Georgia? |
| No |
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| 32) Does a termination statement have to be filed once the debt is relieved? |
| A termination statement must be filed within 20 days after the secured party receives an authenticated demand from the debtor. Even if no demand is received from the debtor, though, a termination statement must be filed within one month after there is no longer a secured obligation or commitment to lend if the collateral is consumer goods, or within 90 days after there is no longer a secured obligation or commitment to lend if the collateral is other than consumer goods. The secured party may be liable for damages for failing to do this. |
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| 33) Must the financing statement addendum form be filed with a financing statement designated for the UCC records that accompanies a UCC financing statement designated for the real estate records? |
| It is advisable to include the addendum along with the original financing statement for filing in the UCC records. |
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| 34) How does the filing party terminate a UCC-2 filing? |
| The filing party should file a UCC Amendment in the UCC records as usual with Block 2 -termination checked. They should also file another UCC amendment in the deed records making sure that the original book and page are listed in block 1A, block 1b is also checked, and Block 2 - termination is also checked and follow instructions for block 9. |
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| 35) What if an attorney/bank INSISTS that we file a UCC-2? |
| The form is no longer valid, but if the filing party insists on the recordation and filing of the instrument accept it. It is the filing party's responsibility to get it right. |
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| 36) We received an Amendment form and a box in block 8 is checked to indicate a restating of the collateral. However, there is no description or restating in block 8 or on the amendment addendum attached. Should this be rejected? |
| No. It is up to the filing party to get the document right. |
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| 37) Is block 8 on the financing statement to be used by the filer or filing office? |
| Block 8 is for the filer's use only. They can enter any identifying information they find useful. It is also the location where a stated maturity date should be listed. |
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| 38) Should the addendum be stamped with recording information? |
| Yes |
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| 39) I received a UCC3 Continuation which at first glance appeared to be continuing two UCC's; however, it turns out they have entered the original UCC file number and date and the UCC3 file number and date where it had previously been continued. If it had been continuing 2 UCC's, is it acceptable? |
| No it would not be acceptable. The filing party should list only the original file number to which the continuation relates and can only effect one UCC with an action. |
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| 40) How do I file a financing statement that has crops as the collateral? |
| Crops are treated as any other real estate related collateral and should be filed accordingly. You would complete the UCC Financing statement and make sure block 6 is checked and also complete the UCC addendum and make sure block 14 (and block 15 if applicable) is completed. You would have this filed and recorded in the real estate records of the county where the crops are located. To also have this appear on the statewide UCC index, you would complete another UCC financing statement and UCC addendum for filing in the UCC records but block 6 on the UCC Financing Statement should not be checked. |
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