§ 9504 Collateral Description Requirements

Commercial Code·California

AI SummaryVerified

Key Takeaways

•A financing statement must clearly describe what items (collateral) it covers.
•It can either list the items specifically or say it covers everything the person owns.
•This rule helps make sure everyone knows what is being used as security for a loan.

Example

You take out a loan to buy a car, and the bank wants to make sure they can take the car if you don’t pay.

The bank files a paper that either says 'this loan covers the car' or 'this loan covers everything you own.' That way, everyone knows what’s at stake if you don’t pay back the loan.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 9504 Collateral Description Requirements

A financing statement sufficiently indicates the collateral that it covers if the financing statement provides either of the following: (1) A description of the collateral pursuant to Section 9108. (2) An indication that the financing statement covers all assets or all personal property. (Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)

Last verified: January 23, 2026

Key Terms

financing statement collateral Section 9108 all assets all personal property

References

Official text at leginfo.legislature.ca.gov
California Legislature. Commercial Code. Section 9504.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References