That’s a good question, and revisions to Article 9 of the Uniform Commercial Code over the years has looked to clarify the answer.

It comes down to determining the business entities’ State of Organization and the State of Residence for individuals. Revised Article 9 sets forth that UCC Financing Statements filed against business entities are to be filed in their state of organization. UCCs filed against individuals must be filed in their state of residence, as defined by their driver’s license or state issued identification. In some circumstances this may necessitate filing in a business entity’s state or organization and in an individual’s state of residence, as well as the state where the business assets are located.

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