A UCC-1 can be thought of as a financing statement giving notice to the public that the trust (or other entity) has a secured interest in the personal property that is being used as collateral in a secured transaction (via the Private Security Agreement or PSA). The purpose of filing the UCC-1 is to document in the public records that the trust holds a secured interest in the property as a creditor. This shields one's interest/ownership in the property and provides notice to any other potential creditors that the trust has a protected interest as a creditor via the Security Agreement entered into. See the following articles to learn more:
Does the PSA or UCC-1 Need to be Filed &
Can Assets Transfer Directly from Operating to Master Trust
A UCC-1 filing is only required for the Pass-Through Trust having a lien on the Operating Trust(s) and/or Public Entity(ies) like an LLC, C-Corp, S-Corp, etc. The Private Security Agreement (PSA) does not need to be filed, although it can be filed with the Secretary of State’s office in the state where the debtor is incorporated or organized (if a business), or lives (if an individual). See COURT PROTECTION SECRETS > ARTICLE III COURT FILING INSTRUCTIONS for more information. If the collateral is real property (such as a mortgage or equipment), file the UCC-1 with the county recorder’s office in the county where the debtor’s real property is located.