Which legal code stipulates the recording of a financing statement to establish a lien on personal property?

The Uniform Commercial Code (UCC) is fundamental in establishing a legal framework for commercial transactions in the United States, specifically regarding personal property. The UCC contains provisions that require the filing of a financing statement to perfect a security interest in personal property and establish a lien. This means that when a creditor wants to secure a loan with a debtor's personal property, they must file a financing statement, which serves as a public notice of their security interest in that property.

The importance of this process lies in providing clarity and protecting the rights of creditors by notifying other potential creditors about the existing security interests. By filing under the UCC, creditors can ensure that they have priority in collecting debts in case of default by the debtor.

The other mentioned codes, such as the Uniform Property Code and the International Contract Code, do not specifically address the recording of financing statements or the establishment of liens on personal property. The Federal Lien Code, while it deals with federal liens, is not the governing document for personal property transactions.