1 00:00:00,000 --> 00:00:05,370 Sean Murray: What is the UCC? Or what are UCCs? UCC stands for 2 00:00:05,370 --> 00:00:10,350 Uniform Commercial Code. It's actually a pretty broad area of 3 00:00:10,350 --> 00:00:13,890 law. But what you need to know what people need to know is that 4 00:00:14,010 --> 00:00:19,740 the UCC is a way to file a public claim on an asset. So if 5 00:00:19,740 --> 00:00:22,500 I lend you money, and I collateralize it against 6 00:00:22,500 --> 00:00:25,530 something specific, how is anyone going to know that that 7 00:00:25,590 --> 00:00:29,400 asset is my collateral? How will they know someone needs to know 8 00:00:29,400 --> 00:00:32,730 people need to know because if you go and sell it, they're not 9 00:00:32,730 --> 00:00:35,430 going to know that I technically have the rights to it. Or if you 10 00:00:35,430 --> 00:00:38,220 try to use it as collateral for another loan, how are they going 11 00:00:38,220 --> 00:00:41,610 to know that I'm the one that has it as collateral first. So 12 00:00:41,610 --> 00:00:44,760 what you do is you file essentially a public notice that 13 00:00:44,760 --> 00:00:48,270 this belongs to me, I have the right to it. So that's what the 14 00:00:48,270 --> 00:00:53,610 UCC is all about. Affirming your rights or interest into an 15 00:00:53,610 --> 00:00:54,180 asset. 16 00:00:55,230 --> 00:00:58,590 UCC then the small business finance industry comes up a lot, 17 00:00:58,920 --> 00:01:02,070 because it's important at times to know what type of interest 18 00:01:02,100 --> 00:01:07,680 other people have in certain assets. Sometimes an MCA 19 00:01:07,710 --> 00:01:10,830 companies will follow UCC and it will be against future 20 00:01:10,830 --> 00:01:13,260 receivables. Or it could even be against something more than 21 00:01:13,260 --> 00:01:16,770 that. It depends. But you will also oftentimes see it in 22 00:01:16,770 --> 00:01:19,590 traditional commercial finance. So that's that's what the UCC is 23 00:01:19,590 --> 00:01:21,870 all about. And that's what UCCs are.