financing statement

Definition of "financing statement"
  1. A document detailing a security interest in collateral that has been used to secure a debt, with its purpose being to notify other creditors about this security interest
How to use "financing statement" in a sentence
  1. The bank required the company to file a financing statement to give public notice of their security interest.
  2. The creditors discovered their security interest was subordinate to another's after they reviewed the financing statement.
  3. Lenders typically file a financing statement to increase their level of protection in case of a borrower's potential bankruptcy.

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