Uniform Commercial Code (UCC) Basics

Many consumers and small businesses may not know that when a borrower gets a loan using as collateral consumer goods or commercial or farm property in West Virginia (excluding real estate), the lender files a commercial lien to protect its financial interest.

See Example

A bank gives a contractor a loan to buy a backhoe. The bank files a UCC financing statement (a lien) with the Secretary of State that lists the contractor as the debtor and the backhoe as collateral. Before the contractor can sell the backhoe, the UCC filing will show the prospective purchaser that the original bank has the first right to recover its loan from the sale.

Alternatively, before the contractor could borrow more money using that same equipment as security, the filing will show the new lender that at least part of the value of the backhoe belongs to another lender. When a debtor pays off the loan, the lender files a release and the property is free and clear.

Many consumers and small businesses may not know that when a borrower gets a loan using as collateral consumer goods or commercial or farm property in West Virginia (excluding real estate), the lender files a commercial lien to protect its financial interest.

See Example

A bank gives a contractor a loan to buy a backhoe. The bank files a UCC financing statement (a lien) with the Secretary of State that lists the contractor as the debtor and the backhoe as collateral. Before the contractor can sell the backhoe, the UCC filing will show the prospective purchaser that the original bank has the first right to recover its loan from the sale.

Alternatively, before the contractor could borrow more money using that same equipment as security, the filing will show the new lender that at least part of the value of the backhoe belongs to another lender. When a debtor pays off the loan, the lender files a release and the property is free and clear.

Lenders protect financial interests through UCC filings on:

• consumer goods

• commercial equipment

• farm equipment and products

• fixtures

• public-finance transactions

• manufactured homes

• timber to be cut and as-extracted minerals.

Access the links below for more information about UCC filings.

• UCC Filing Procedures

• UCC Search Instructions

• Request for UCC Bulk Data

• Summary of UCC Rules

Secured transactions not covered by UCC filings

Real estate transactions relating to land, in-ground mineral rights, houses and commercial buildings are not covered by standard UCC filings. These are filed as real estate transactions with the Clerk of the County Commission in the county where the property is located. These include:

• Real estate mortgages

• Other liens against real estate.

However, some "real-estate related" transactions may be subject to UCC filings, such as:

• Minerals as they are extracted

• Timber to be cut

• Fixtures which may become part of the real estate after installation.

The following property required to have a certificate of title under West Virginia Code §17A-3-2 are not subject to UCC filings:

• Highway vehicles

• All-terrain vehicles

• Motorboats

Liens against these vehicles are filed as part of the title with the Division of Motor Vehicles.

Contact the UCC Division for further assistance regarding Uniform Commercial Code.​​