financing statement
- 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
- The bank required the company to file a financing statement to give public notice of their security interest.
- The creditors discovered their security interest was subordinate to another's after they reviewed the financing statement.
- Lenders typically file a financing statement to increase their level of protection in case of a borrower's potential bankruptcy.
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