What must a filing statement include regarding collateral description?

In the context of secured transactions, a filing statement must provide a description of the collateral that is sufficient to put third parties on notice regarding the security interest. The answer provided indicates that a description can be broadly stated as "all assets" if it is clearly authorized by the debtor.

This is correct because, under the Uniform Commercial Code (UCC) guidelines, a description of collateral can indeed include blanket terms such as "all assets," especially when the financing statement clearly indicates that this broad description is permitted and authorized by the debtor. The key factor is that the description must be specific enough to allow interested parties to identify what collateral is covered without ambiguity, but blanket descriptions are generally acceptable as long as they meet the authorization criteria.

In practice, if a debtor consents to a financing statement that describes the collateral broadly, it serves a valid purpose in securing various types of assets owned by the debtor without needing to list each one specifically. This approach provides flexibility in securing a creditor's interest, particularly for businesses with numerous assets.

Thus, the idea that a filing statement can include a general term like "all assets" when properly authorized underscores the balance between detail and practicality in secured transactions law.