What is the purpose of UCC-3 forms in secured transactions?

UCC-3 forms serve a specific purpose in secured transactions, primarily for amending or terminating financing statements. When a secured party wants to make changes to a previously filed financing statement—such as correcting information, adding or removing collateral, or terminating the security interest entirely—they must use the UCC-3 form. This form ensures that the public record accurately reflects the current status of the secured party's rights in the collateral.

By allowing for these amendments, UCC-3 forms maintain the integrity and clarity of the public record regarding secured interests, which is critical for establishing priority among competing claims and for informing potential creditors and other interested parties of the status of the collateral.

The other options do not accurately describe the function of UCC-3 forms. They do not initiate secured transactions, create new liens, or handle the transfer of collateral ownership. Instead, they focus on managing the existing security interests through modifications or terminations.