What is UCC Insurance?
UCC insurance provides a lender coverage insuring that its security interest is validly created and is enforceable, and that its lien has been properly perfected and has priority as insured, subject to the policy exclusions and exceptions to the coverage. Generally, UCC insurance indemnifies a named insured, and its successors and assigns, against loss it incurs if a perfected security interest in scheduled collateral fails as a result of any of the following insured risks: • Failure of the security interest to attach to or be created as to the collateral; • Failure of the security interest to be perfected; • Failure of the security interest to have priority against • Uther security interests in the same collateral; • The lien of a lien creditor3; or • A party acquiring an interest in the collateral after the date of the policy; • Failure of the security interest to be valid and enforceable due to fraud, forgery, undue influence, duress, incapacity, incompetency or impersonation; • Fai
