How to Move Your Business With a UCC
Moving your business without informing the lender who holds a UCC (uniform commercial code) against it can be considered an event of default. The resulting penalties and legal actions can be crippling to your company. A UCC is documented and filed at the state or county office that places a lien on assets, equipment or inventory. If a business moves out of the jurisdiction where the UCC is recorded, the document can be rendered invalid and the lender can call the loan. To avoid such entanglements, maintain an open dialogue with your lender to ensure the proper modification is filed in your new location.
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Instructions
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Contact your bank and inform your loan officer that you will be moving your business. Send him written confirmation of your new location.
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Pay off your loan in its entirety if the lender is not amenable to the move. Obtain financing through a lender in your new location if necessary. Submit to a new UCC-1 filing through the new lender.
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Initiate proceedings to liquidate your business if you are planning to start a completely new company. Begin proceedings to move your existing business if you plan to maintain the existing name.
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Register your new business with your current state or your existing business in your new state, whichever is applicable.
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File a UCC-3 termination document if you are moving out of the county or state. Ensure the "Termination" box is checked. File a new UCC-1 naming the lender as lien holder in the new state, county or both, as the case may be.
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File a UCC-3 amendment document if you are only moving to a new location within the same state or county. Check the box that says "This amendment affects debtor." Fill in the new location information in Section 7.
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