Section 306

Security Interests in Personal Property

306.01

Uniform Commercial Code (UCC) Financing Statements

Requirements

You must:

  • Ensure that the Security Instrument Security InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the Loan Document obligations. creates a Lien LienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. on all Personal Property Personal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. .
  • Ensure that the Lien LienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. is a perfected first priority Lien LienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. .
  • Assign each UCC UCCUniform Commercial Code security interest to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! .
306.02

Creating and Perfecting the Security Interest

Guidance

Article 9 of the UCC UCCUniform Commercial Code covers the perfection of a security interest in Personal Property Personal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. .

The following table describes how to create and perfect a security interest.

To…

Do the following…

Establish whether the Borrower or a third party owns the Personal Property

Confirm that the Borrower BorrowerPerson who is the obligor per the Note. has provided a representation of ownership in the Underwriting Certificate (Borrower) ( Form 6460.Borrower ).

Verify that no other party has a Lien on the Personal Property

Conduct searches for UCC UCCUniform Commercial Code financing statements, tax Liens LiensLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. , and judgments on all relevant parties to the transaction.

Obtain a perfected first security interest in the Personal Property
  • Obtain a security agreement from each third party that owns Personal Property Personal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. .
  • Verify that the Security Instrument Security InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the Loan Document obligations. and each third party security agreement contains a granting clause creating a security interest in all Personal Property Personal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. .
  • File a UCC UCCUniform Commercial Code -1 financing statement in the appropriate filing and recording office(s), with a description that matches the security interest granted in the Security Instrument Security InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the Loan Document obligations. .

Assign the security interest from you to Fannie Mae

File an appropriate assignment (e.g., UCC UCCUniform Commercial Code -1Ad; UCC UCCUniform Commercial Code -3) in the same office(s) where the UCC UCCUniform Commercial Code -1 is filed or recorded.