Financing statement

Definition of Financing statement

A document setting out a secured party’s security interest in goods. A document designed to notify third parties, generally prospective buyers or lenders, that there may be an enforceable security interest in the property of the debtor. Villa v. Alvarado State Bank, Tex.Civ.App., 611 S.W.2d 483, 486. It is merely evidence of the creation of a security interest, and usually is not itself a security agreement. Shelton v. Erwin, C.A.Mo., 472 F.2d 1118, 1120.

Under the Uniform Commercial Code, a financing statement is used under Article 9 to reflect a public record that there is a security interest or claim to the goods in question to secure a debt. The financing state ment is filed by the security holder with the Secretary of State, or similar public body, and assuch becomes public record. When the document is filed with the appropriate government agency, all potential lenders and third parties are put on constructive notice of the security interest. See also Secured transaction; Security interest.

That's the definition of Financing statement in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.