#CTtalk: UCC Policy

Understanding the UCCPlus Insurance Policy

An interview with Gary Zimmerman
Senior Vice President and Chief Underwriting Counsel
of Fidelity National Title Group's UCCPlus Division

What is a UCCPlus Insurance Policy?

A UCCPlus Insurance Policy (UCCPlus Policy) is a title insurance product that insures most personal property taken as collateral for a loan.  Similar to a lender's real estate title insurance policy that insures a mortgage or deed of trust is a fist priority lien on real property, a lender's UCCPlus Policy insures that the personal property pledge to the lender as collateral for a loan is a first priority lien.  The UCCPlus Policy shifts all of the risk from the insured lender to the title company by insuring proper validity, enforceability, attachment, perfection and priority relating to the lender's security interest or lien on the personal property.  Secured lenders value this as a risk management toll that decreases their operational risk by shifting the documentation, perfection and fraud risk to the title company.  Leading commercial law firms and lending institutions recognize the use of a UCCPlus Policy as a best practice.

Are there other ways that a UCCPlus Policy shifts risk?

[email-download download_id="1645" contact_form_id="1288"]

Leave a Reply