How to Perfect a Lien
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A security note should identify collateral with an I.D. number when posssible.Photos.com/Photos.com/Getty Images
Prepare a security note. Draft a detailed security note stating the parties' agreement. State the reason the creditor is acquiring the lien. For example, the lien may be attached to property to secure repayment of a loan. State the terms that must be fulfilled for the security interest to be released. For instance, stipulate that the loan must be repaid in specified payments over a declared period of time. Identify the specific property to which the lien is attached. Use details in the property description such as serial, hull or identification numbers, if possible. - 2
Small fees apply for filing financing statements.Ryan McVay/Photodisc/Getty Images
Prepare a financing statement. Obtain a UCC financing statement from the official state website where the property is located. Conduct an Internet search that includes the name of the state and the terms "UCC financing statement" to help locate the proper website and links. Fill out the financing statement pursuant to the accompanying instructions provided and have all required parties sign it. Pay any applicable filing fee to the appropriate state body. Make the financing statement publicly available for inspection by recording it with the proper government office. - 3
Property held to perfect a lien should be maintained in a secure manner.John Foxx/Stockbyte/Getty Images
Take possession of the property, only if the security note allows for it. Follow the manner exactly as agreed upon in the note regarding how and when possession should be obtained. Check applicable state UCC provisions to learn the specific rules for perfecting a lien by possession. Take reasonable steps to safeguard the property. Store the property in a secure area and provide reasonable accommodations for its care. - 4
Seek legal advice relating to specific questions for perfecting a lien.Jupiterimages/Comstock/Getty Images
Seek legal advice. Rely on a lawyer to know the pertinent state laws for perfecting any specific lien. Follow the lawyer's advice regarding the best choice for perfecting a lien in a particular piece of property. Cooperate with the lawyer to execute all required documents and undertake all directed steps to achieve lien perfection.
