What is 'Continuation Statement'
An amendment that is attached to a borrower's financing statement which extends the lender's lien on the borrower's collateral past the original expiration date. The actual continuation statement itself must be filed with the secretary of state or other appropriate authority before it can be attached to the financing statement.
BREAKING DOWN 'Continuation Statement'
The Uniform Commercial Code dictates that the lender's lien on the borrower's collateral ceases after five years. If the term of the loan extends past this time, then a continuation statement is commonly attached to the financing statement for the lender's protection. Continuation statements are subject to the laws of the jurisdiction in which they are located.