An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

UCC Filings

At a very basic level, a UCC (Uniform Commercial Code) filing records the fact that an asset is being used as collateral to secure a loan. The UCC filing is filed by a lender to document a lien on the property or equipment. It also serves as a means for other lenders to search for existing liens.

When to File a UCC

For a car loan, a lender will physically hold the title with the financial institution’s lien information on it. By comparison, a UCC financing statement (known as a UCC-1) is generated by a bank or credit union when money is borrowed against collateral without a physical title or deed. Examples of such assets include:

  • inventory
  • crops
  • accounts receivable
  • equipment
  • livestock

UCC Filing Regulations

A lender must file a UCC-1 with the state in which the borrower resides. With a business or corporation, the form is filed in the state in which the entity originated. This gives the lender a place to file as well as a source to search for existing liens on assets. For example, here’s the UCC database in the state of Colorado.

In short, before lending based on untitled collateral, a bank or credit union can research to confirm there isn’t already a loan against the asset(s). Financial institutions work to lower risk by avoiding approval of loans on items with existing liens, which would place the new loans in a junior position.


To maintain the first position on a lien, a lender must file a continuation before the UCC filing’s expiration. Therefore, it is important to track UCC filing end dates and begin the continuation  process well in advance.

Because of the importance of filing UCC reports every five years, institutions often impose special quality control measures on data entry, checking to ensure that both the original filing and subsequent refiling action dates are logged correctly. Similarly, banks and credit unions have various tickler systems in place to trigger steps for refiling. Some financial institutions use their core systems, while others might opt for a spreadsheet or database. Smart lenders have a system like AccuAccount in place to automatically highlight impending expirations at 90, 120, or even 180 days out from the expiration date, allowing ample time to complete continuations.

UCC Filing Resources

For more information about collateral tracking and loan management, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Read more definitions by visiting our banking glossary.

Explore more resources

Exception Tracking Cost Calculator

Exception tracking has many moving parts—from notice generation to recordkeeping and reporting. How much does it cost your financial institution each year? Find out with Alogent’s free calculator.
Read More »

Related articles

Tuesday 19 September 2023

From Data to Results: The Role of Personalization in Your Digital Banking Platform

One powerful strategy to enhance the user experience and drive engagement on digital platforms is through built-in contextual marketing. In the world of digital banking…

Learn More »

Wednesday 6 September 2023

[Playbook] Efficiently Managing To-Dos with Task Exceptions

Your financial institution is growing—more branches, more team members, more loan and account holders, and more follow-up. To keep pace with this complexity, you need…

Learn More »

Monday 28 August 2023

Exception Tracking: Is Now the Right Time to Upgrade Your Workflow?

Documentation and follow-up tasks for financial institutions to manage is commonplace—especially for banks and credit unions involved in commercial lending. Proactively tracking missing and expired…

Learn More »

Thursday 17 August 2023

[Playbook] Tracking and Resolving Recurring Document Exceptions

Proactively dealing with missing and expiring documents is a key component of an effective exception management strategy. However, that’s easier said than done when your…

Learn More »

Wednesday 9 August 2023

Six Steps to Maximize Your Financial Institution’s Digital Transformation Journey within the Digital Banking Channel

In today's rapidly evolving digital banking market, digital transformation and the adoption of cutting-edge, scalable solutions has become a necessity for banks and credit unions…

Learn More »

Tuesday 1 August 2023

Check Volumes are Declining, But Check Fraud is Rising: What’s it Costing your Financial Institution?

No financial institution – large or small – is protected from transaction or check fraud. And, the difficult reality for institutions is that fraud can…

Learn More »

Wednesday 26 July 2023

Boost Productivity at your Financial Institution with Enhanced Cold Storage

Cold storage systems can support numerous use cases at banks and credit unions. The phrase “cold storage” can be used to describe technology that manages…

Learn More »

Tuesday 18 July 2023

[Playbook] Interfacing Your Imaging System with eSign, LOS, & Other Systems

Your financial institution relies on a variety of technology to ensure efficient commercial lending operations—everything from loan origination systems (LOS) to eSign products. Wouldn’t it…

Learn More »