A UCC lien is a financial document stating that a lender (secured party) has a claim in certain property belonging to someone else (debtor). By filing a UCC lien, a secured party establishes his or her priority for payment over subsequent secured parties if the debtor defaults on the loan. A lien filed with the Secretary of State provides notice to interested parties of the existence of a security interest against specific collateral.
It is important to reflect the true and correct name of the debtor when filing a lien notice with the Secretary of State. Your lien notice will be rejected if the debtor name does not conform to 30-9A-516, MCA. Listed below are helpful tips to consider when reflecting a debtor name.
- If the debtor is an individual, indicate the name noted on their current driver’s license or state identification card.
- If the individual has only one financing name, such as “Cher,” list the name in the space provided for the (surname) last name.
- Trade names adopted by individuals and organizations are not correct debtor names.
- Never combine multiple debtor names on one form (for example, Smith, Jack and Jill, or Jack Smith DBA/Jack’s U Serve).
- Identify suffixes to distinguish filings by lineage (for example, Jr. or Sr.)
- If the debtor is an organization, check the charter documents in the organization’s state of jurisdiction. For organizations registered in Montana you may verify their name through this link Business Entity Search.
- Double-check the spelling of the debtor name.
- Identify the debtor as an individual or an organization by completing the correct fields on the form.
- If the debtor is a “registered” organization, the UCC is filed in the state of organization/registration.
- If the debtor is an individual, the UCC is filed in the state of legal residence.
Administrative Rule: 44.6.202 Effective Date and Time
(1) Any filing delivered by the postal service has an effective time as of 8:00 a.m. on the delivery date. Filings received after 4:00 p.m. have the next business day’s effective date.
(2) Any filing received by fax, walk-in, or express delivery service will have the same date and time as received.
Debtor and Secured Party Signatures
- UCC Lien: The secured party of record must authorize the filing.
- EFS (Effective Financing Statement) Lien: The debtor must sign, authorize or authenticate the filing and the document must be filed by the secured party under the Federal Act. If authorization or authentication occurs, the debtor is not required to sign the EFS notice filed with the Secretary of State’s office. An EFS filed electronically through the Secretary of State’s online filing site does not require the debtor’s signature.
- Title 71, MCA, Lien: The secured party of record must sign.
When filing an amendment with the Secretary of State’s office you must provide the original (initial) filing number and identify the type of amendment you are filing by checking the appropriate box and reflecting any additional information required on the form. Only one amendment type per form is permitted. The Secretary of State’s office no longer requires that a current debtor and secured party name appear on each amendment form to assist with identifying the filing. It is the responsibility of the filer to ensure they have correctly displayed the original (initial) filing number on each amendment.
The online UCC Search allows users to search debtor names, view filing chains, and download debtor search certificates and images of lien documents. There are two options available through the online service. Option 1: The “Subscription” service allows users, for a flat monthly fee, to download unlimited debtor search certificates. There is an additional fee for downloading images of lien documents. Option 2: The “Non-Subscription” service allows users to download debtor search certificates, at a cost per certificate, plus an additional cost when downloading images. Information regarding the Secretary of State’s search logic is available online and in the following Administrative Rule: 44.6.201. UCC Search »
Redaction of Tax ID Number
To protect personal information, the Secretary of State’s office will redact the Tax Identification Number on all lien images available to the public. A non-redacted version of the image will be retained in our files.
Liens currently filed with the Secretary of State’s Office are:
- UCC Lien, a lien against goods used or bought for commercial purposes.
- Agricultural Lien, a lien against goods used or bought for farming or ranching purposes.
- Effective Financing Statement Lien, a lien against specific crops, livestock, and unmanufactured products. These liens appear on the Farm Bill Master List distributed to registered buyers.
- Transmitting Utility Lien, a lien related to transmitting electric or electronic communications; operating a railroad, subway, street railway or trolley bus; transmitting goods by pipeline or sewer; and transmitting or producing electricity, steam, gas, or water.
- Notice of Federal Tax Lien, a lien created and filed by the IRS when taxes are assessed against a taxpayer on all his/her property and rights to property.
- Notice of Child Support Lien, a lien created and filed by DPHHS Child Support Division against real or personal property that is due and/or owed in connection with child support.
- Title 71, MCA, Lien, a lien against crops for services performed in relation to that crop, such as spraying or dusting.
- Consumer Goods Lien, a lien against goods used or bought for personal, family, or household purposes.
- Public Finance Transaction Lien, a lien against transactions in which long-term debt securities are issued to and/or for the benefit of a state or governmental unit of the state.
- Manufactured Home Transaction Lien, a lien that creates purchase-money security interests in manufactured homes.
The Federal Food Security Act provides buyers of farm products, commission merchants, and selling agents the opportunity to register with the Secretary of State’s Office for a listing of security interests in specific farm products. A “farm product” is an agricultural commodity such as wheat, corn, soybeans, or a species of livestock such as cattle, hogs, sheep, horses, or poultry used or produced in farming operations, or a product of such crop or livestock in its unmanufactured state (such as ginned cotton, wool-clip, maple syrup, milk, and eggs), that is in the possession of a person engaged in farming operations. Failure of a buyer to register with the Secretary of State’s Office makes the buyer liable for payment of the security interest. Buyers are only registered for those portions on the master list for which they register. A registered buyer will receive clear title protection when purchasing farm products for the products in which they registered.
To register with the Secretary of State’s office for the Farm Bill Master List, complete the online registration form available through the SIMS subscription service or by completing the Farm Bill Registration form to receive the Master List on paper. Montana does not charge a buyer a fee to register to receive the Master List. Once registered, the buyer will receive daily updates to the online Farm Bill Master List. Buyers requesting paper output will receive updates through the 15th of each month with the Master List being mailed no later than the 20th of each month.
The fees for the Master List are as follows:
- Online: $20.00 per commodity ordered
- Paper: $20.00 per commodity ordered, plus additional costs if the number of pages exceeds 50
Registered buyers must refer to the Farm Bill Master List prior to purchasing farm products to determine if a security interests exists. If a security interest exists against the specific farm product being sold, the buyer is responsible for issuing a check in the seller’s name and lender who holds the security interest.
Lenders must use the Effective Financing Statement form that complies with the requirements under the Federal Food Security Act when filing “farm product” related lien notices with the Secretary of State’s Office if they want their lien to appear on the Farm Bill Master List.
Uniform Commercial Codes, referred to as UCCs, are important tools for enabling and supporting tribal economic and housing development by improving access to commercial and consumer credit.
A comprehensive and culturally appropriate secured transaction code can assist Tribes, American Indian-owned businesses , and Indian consumers that are encountering barriers to affordable credit by allowing for business to be transacted more efficiently and cost-effectively with parties located outside of the tribal jurisdiction.
Tribal commercial laws and transaction codes more effectively help achieve the goal of economic development if they are sufficiently similar, or harmonized, with the laws of the states and the Tribes. When adopted and implemented, they can support and strengthen the effective exercise of tribal sovereignty.
The sovereign nations listed below have active agreements with the Secretary of State’s office. Click on the links to access the available lien forms.