What is the purpose of a financing statement?
A) to meet UCC accounting requirements under Article 9
B) to create a security interest
C) to amend a security agreement
D) to alert third persons that a creditor has a security interest in the collateral described

Question

Quizplus · Accepted Answer

The purpose of a financing statement is to alert third persons, such as other creditors or potential buyers, that a creditor has a security interest in the collateral described. It is filed with the appropriate state office, typically the Secretary of State, and provides public notice of the creditor's interest in the collateral.

What Is the Purpose of a Financing Statement