Utah Department of Commerce Answers Call for Electronic Images of Uniform Commercial Code Filings
by Kimberly Frost
For several years, the Division of Corporations and Commercial Code, located within the Utah Department of Commerce, has made it possible for users to file Uniform Commercial Code (UCC) statements electronically, as well as to search the Division’s index of active UCC filings online. In February 2007, the Division launched a new application that allows users to view and print images of paper UCC filings over the Internet. The new application, called “UCC Imaging,” is one more tool the Department of Commerce has added to its menu of online services to make it easier to do business in Utah.
With this new service, once a UCC filing has been located online through the Uniform Commercial Code & Central Filing Search System, https://secure.utah.gov/uccsearch/uccs, an image of the filing can be downloaded instantly to the end user. Previously, the only way to retrieve these images was in person at the Department of Commerce, or through an in-house search based on legal need. The new online service now fills a critical need for bankruptcy trustees, lenders, creditors and their transactional and litigation counsel.
In order to understand how this new service works with existing services, it is first necessary to provide a quick background of the UCC filing process. Currently, there are two ways to file an Initial Financing Statement with the Division: electronically or by paper. The same fee applies to both filing methods. Continuation Statements and Termination Statements can also be filed electronically through this system. All other filings, such as Assignments and Amendments of parties and collateral descriptions, must be filed in person or by mail. Last year, the percentages of new filings completed electronically were as follows: Financing Statements – 55%, Continuations – 53%, and Terminations – 61%.
Regardless of the filing method, paper or electronic, images can now be retrieved through UCC Imaging for any active filing. The data currently dates back as far as 1965. If a transaction is filed by paper, the online image can be viewed as a scanned document, or as a PDF document populated from electronic data. Scanned images of paper filings are somewhat self-explanatory: the original documents are scanned and uploaded for viewing. Scanned images of paper filings are uploaded within a few days of receipt. At the same time, the information from the original paper documents is transcribed and entered into the electronic database as PDF document files. The populated PDF documents are made to look nearly identical to the paper filings. End users have the choice of viewing scanned images or the PDF documents of all electronic data in the UCC Imaging system.
Online filings on the other hand, are only available in the PDF format. The PDF images for online filings are generated instantly and available immediately after filing. Scanned images from paper filings and PDF documents from electronic information are both recognized as valid agency records, and the Division shows no preference for one over the other.
As previously noted, UCC filings have long been available to the general public at the Department of Commerce. UCC Imaging is also available to the general public, but it requires a Utah.gov network registration. Anyone wishing to view UCC Images can register for a Utah.gov account, either online or by mail for an annual fee. Each downloaded image (be it a Financing Statement or an Amendment) costs the user $2.00. If any problems should arise when using the online UCC Search application or the related UCC Imaging tool, the website provides customer support for the online user.
UCC filings serve as public notice posted with the Division of Corporations and Commercial Code. All filings that meet minimal statutory requirements for filing components are indexed and filed. At no point does the Division otherwise determine the legal sufficiency or insufficiency of a document, or determine whether the information in the document is correct. As such, when a transaction is filed electronically, the Division does not make attempts to determine who is making the filing.
UCC Imaging is not the only addition the Division of Corporations plans for the UCC filing and search system. The Division plans to make all types of UCC filings available electronically for online users. In the near future, the Division will enable UCC filers to upload images of collateral descriptions for electronic filings. Currently, the online user is limited to a 4,000-character description per page of the collateral. The Division plans to make it possible for scanned documents to be attached as an alternative. This change will make it possible for filers to include a far more inclusive description of collateral, providing additional protection to both creditors and debtors.
For more information on electronic UCC services can be found at http://corporations.utah.gov/uccpage.html.