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.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
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

Alogent Fraud Mitigation Solutions

Check fraud - using paper or electronic checks to obtain money illegally - can occur at any step in the user journey and from any device or workflow by forging an account holder’s signature on a stolen check, altering a legitimate check, or writing a...
Read More »

Banker's Tracking Calendar

Key Dates to Track in 2024 [PDF] Download this 2024 calendar to track key submission and reporting dates, tax deadlines, and other important dates. Avoid last-minute scrambles this year. Customize Your Calendar for Maximum Results This tracking calendar also...
Read More »

Related articles

Monday 26 February 2024

Banking Innovation: Are You Keeping Up with Transaction Processing Trends Shaping the Banking Market?

The payments landscape continues to take shape with alternative payment and cashless transaction methods, yet in the face of persistent digitalization, checks remain a viable…

Learn More »

Thursday 15 February 2024

Meeting Gen Z’s Banking Demands and Remaining Relevant with the Largest Generation in American History

The year is in full swing, and financial institutions are keenly observing the emerging powerhouse of economic influence: Generation Z. This generation isn’t just digitally…

Learn More »

Tuesday 6 February 2024

From Loan Imaging to Cold Storage: Extend AccuAccount’s Automation Potential with Additional Content Management Capabilities from Alogent

Efficient document and information management is increasingly important for modern financial institutions. Paper documents, siloed information, and outdated technology create operational bottlenecks that can be…

Learn More »

Wednesday 24 January 2024

How to Get More Done with Your Desktop Scanner (& AccuImg)

Despite the shift to digital, banks and credit unions still need a scalable way to manage the seemingly constant flow of financial statements, tax returns…

Learn More »

Tuesday 16 January 2024

Is 2024 the Year of Mobile Banking for Banks and Credit Unions?

Although mobile banking has become commonplace, this is still an area for banks and credit unions to differentiate themselves. Given the market's ever-growing demand for…

Learn More »

Tuesday 9 January 2024

Beyond Resolutions: Keeping Account Holders Loyal and their Money Savvy for the Long-Term

While nearly every adult makes at least one resolution in the new year, some estimates suggest less than 10% complete them – due to unforeseen…

Learn More »

Wednesday 27 December 2023

2024 Retail Banking Trends: Insights and Tips for Banks and Credit Unions to Drive Growth

2024 is going to be all about optimization: strategies, processes, and solutions that have transformed the banking world this year. But, it's important for technology…

Learn More »

Tuesday 12 December 2023

It’s the Most Wonderful Time of the Year… for Check and Payment Fraud

Payment scams and online threats are ever-present, and with evolving techniques and emerging technologies, fraudsters offer a renewed threat this holiday season. Despite the increased…

Learn More »