What constitutes a "sufficient" financing statement?

A "sufficient" financing statement is a document that provides essential information to establish a secured party's interest in the collateral described in the statement. This legal document is crucial in the context of secured transactions, particularly under the Uniform Commercial Code (UCC).

The correct answer includes the names of the debtor and the secured party, along with a description of the collateral that secures the obligation. This combination of information ensures that anyone searching public records can identify the parties involved and the specific collateral at stake. By including all three components—debtor's name, secured party's name, and a clear description of the collateral—the financing statement effectively informs third parties about the secured interest and helps establish the priority of claims against the collateral.

Lack of any of these elements would make the financing statement inadequate for proper legal purposes, potentially leading to complications regarding priority in case of default or bankruptcy situations. Therefore, providing a complete picture by including all three elements is what makes a financing statement sufficient.