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How do I secure my loan?

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File UCC Form
To get more information on UCC-1, download a form or even file electronically, select your state:
When you create your Promissory Note, you can enter information about any collateral you want to use to secure the loan. Doing so gives the lender the right to take possession of the collateral in the event of default. However, the lender may not be the primary lien holder of the property put up as collateral. In order to be certain that you can take possession of the collateral in the event of default, it’s a good idea to “perfect” the security of your loan. If the collateral is anything other than a motor vehicle (e.g., car, van, truck, farm equipment, boat, etc.), the process is pretty straightforward.

As the lender you can file a UCC form with your state’s Secretary of State. Some states even let you do this online. There is usually a nominal fee for filing a UCC form which can vary by state. If you want to learn how to file a UCC form online, just select your state in the drop down menu to the right.

If you are securing your loan with a motor vehicle as collateral, the safest way to perfect the security is to obtain a Certificate of Title for the vehicle, naming the lender the title to the vehicle. Once the loan has been repaid, the Title can be transferred back to the borrower free and clear. Your state Department of Motor Vehicles (DMV) can assist you with Title forms.


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