UCC-1 financing statements are effective for five years. Before the five years has run, the creditor must renew the financing statement by filing what’s called a continuation statement. This is essentially a UCC-1 with a check next to the box labeled “continuation statement.” The only caveat is any continuation statement must be filed no sooner than six months before the five year period has expired. Assuming a continuation statement is filed, the five year period is expanded by five years from when the original would have expired. This can be done indefinitely.
What if the Debtor filed bankruptcy?