UCC

Uniform Commercial Code

Fixtures are part of the real estate. Therefore, a lien (such as a UCC) against a fixture must generally be excepted when insuring title to the land.

Requirement

UCCR01 STG

UCCs By Lessees

For Informational Purposes Only: The Company will not specifically except to the following financing statements in the Policy to be issued because same apply to personalty (which is not insured) or to the interest of lessees in the land:
Comment: Sometimes UCCs against lessees are not specifically excepted in a loan policy on the fee if the Company except to the lease and disclose the UCCs.

See Underwriting Manual

UCCR02 STG

Require Release of UCC

The Company requires for its review a satisfactory termination (or release of the land) of the Financing Statement.
Comment: Separately filed UCCs must be released unless barred (over 5 years old and no continuation or bankruptcy). You may not rely upon a nonjudicial foreclosure of a prior mortgage to waive the UCC.

See Underwriting Manual

Exception

UCCX01 ALTA

Financing Statement

Financing Statement executed by ____________ to ____________ recorded ____________.
Comment: You should use this language when excepting to a UCC.

See Underwriting Manual

UCCX02 ALTA

Continuation

Continuation Statement recorded ____________ pursuant to that Financing Statement recorded ______________.
Comment: A continuation statement extends a UCC an additional 5 years.

See Underwriting Manual

UCCX03 ALTA

Assignment

Statement of Assignment to __________________ recorded ____________ of that Financing Statement recorded.
Comment: You should use this language in excepting to a UCC assignment.

See Underwriting Manual

UCCX04 ALTA

Except to Fixtures in UCC

Rights of others in and to fixtures described in that financing statement recorded _____________________.
Comment: If a lessee executed a UCC and the new insured lender on the fee objects to the UCC exception, the Company prefers to carve out the itemized fixtures covered by the UCC.

See Underwriting Manual