Recently, while I was discussing art with an attorney, UCC filings came up. Usually, this is filed when you take out a business or personal loans and the lender to protect its collateral files the UCC with the state.
It’s an inexpensive file, which is used to notify the state you are a lender and have claim to the object corresponding to the UCC.
So I always tell everyone when you lend for sale your Art, to always have an expiration of consignment, in case the other party gets in financial difficulties the asset reverts to you at the end of the consignment date.
But now adding the UCC you attach yourself to the asset so any court can recognize you are in line to be paid if the art is sold.
An interesting layer of protection from an unstable partnership.
William