Identification and Purpose of UCC Instruments (Records)

Amendment.  A record which modifies a filed financing statement; includes the formerly separate assignment, continuation statement, release (now referred to as a collateral change), and termination statement as well as the former amendment function.  An amendment must contain the file number of the initial financing statement that is being amended.

Assignment.  An amendment to the initial financing statement or a component of an initial financing statement that transfers a security interest to a new secured party.  A separate amendment with an assignment must contain the file number of the initial financing statement.

Continuation Statement.  An amendment to the initial financing statement which identifies, by its file number, the initial financing statement to which it relates and indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.  T.C.A. § 47-9-102(27).

Financing Statement.  This record is a record or records composed of an initial financing statement and any filed record relating to the initial financing statement.

Information Statement.  A record which identifies the record to which it relates by file number assigned to the initial financing statement, indicates that it is an information statement and provides the basis for the person's belief that the earlier filed record is inaccurate and indicates the manner in which the person believes the record should be amended to cure any inaccuracy or the basis for the person's belief that the earlier record should not have been filed.  T.C.A. § 47-9-518.

Initial Financing Statement.  A summary or abstract of a security agreement that contains information designed to place the public on notice concerning the basic facts of the security interest that has been created.  At a minimum, it identifies the debtor and secured party and the collateral subject to the security agreement.  An initial financing statement may also include an assignment of the security interest to a new secured party.  The initial financing statement may state that the document is to be recorded in the real estate records.

Release.  An amendment whereby a secured party ceases to have a lien on certain “released” collateral.  This was a separate instrument under the former UCC.  The current UCC provides for the deletion of collateral on the amendment form. The term "release" is not a part of the vocabulary of the current UCC law.  Instead, the partial release of collateral is referred to as a collateral change.  The amendment deleting collateral from that given in the initial financing statement must contain the file number of the initial financing statement.

Security Agreement.  The security agreement is the basic instrument which creates or provides for a security interest and establishes the terms of the secured transaction. T.C.A. § 47-9-102(74). This is often a long and detailed legal instrument and usually is not filed with either the register or the Secretary of State.

Termination Statements.  A termination statement is an amendment of a financing statement which identifies, by its file number, the initial financing statement to which it relates, and indicates either that it is a termination statement or that the identified financing statement is no longer effective.  T.C.A. § 47-9-102(80).