One of the most important steps you can take to minimize risk and increase potential for recovery is to execute a security agreement and to perfect .. Read more that agreement through the filing of a UCC-1. Simply put, if your customer files bankruptcy and there is no signed security agreement/UCC-1, a bankruptcy court would treat you as an unsecured creditor. That means you would be one of the last creditors paid, if you got paid at all. By signing a security agreement, you secure a place in line to be paid in the event of bankruptcy. All creditors granted secured positions through the UCC process are paid first, in the order of filing.
- Share your Experience