UCC Document Community

Update us when you get this resolved! I'm curious how long it takes them to fix their mistake once you contact them about the missing termination.

This is frustrating but unfortunately pretty common. Banks often have separate departments handling settlements vs UCC filings and they don't always communicate. The good news is you have clear grounds to demand they fix this - your settlement agreement should have language about releasing all security interests. I'd suggest calling them Monday with your settlement paperwork in hand and asking to speak with someone who can handle UCC-3 terminations immediately. Don't let them transfer you around - stay on the line until you get someone who can commit to filing the termination within 30 days max. Also, get their name and direct contact info so you can follow up. The fact that you're trying to get new financing makes this urgent since that UCC-1 is blocking your ability to use that equipment as collateral elsewhere.

One more tip - if you're doing a lot of NC filings, consider bookmarking their business entity search page. I probably use it 3-4 times a week to verify debtor names before filing UCC documents.

This is such a common issue! I've been handling UCC filings for several years and NC really is one of the strictest states when it comes to exact name matching. What I always tell new paralegals is to never trust the loan documents for debtor names - always go straight to the Secretary of State database first. It's saved me countless rejections and the embarrassment of explaining to partners why a filing got bounced back. The temporary perfection clock is stressful enough without having to deal with name matching issues on top of it.

In my experience, when clients mention weird form numbers like this, 90% of the time they're looking at outdated information or confusing different types of filings. I'd just start with what you know they need (probably a UCC-1 for the equipment financing) and work backwards from there.

I've run into this exact scenario before! Last year I had a client insisting they needed a "UCC 15" form for a vehicle financing deal. After some digging, it turned out they were looking at an old template from their previous lender that had internal reference numbers that didn't correspond to actual UCC forms. Illinois definitely uses the standard UCC-1, UCC-3, and UCC-5 forms like everywhere else. My guess is your client either has outdated paperwork or is mixing up form numbers from different filing systems. I'd recommend just walking them through what you actually need for the equipment financing - likely a standard UCC-1 to perfect the security interest - and let them know that "UCC 11" isn't a real form in Illinois or any other state I'm aware of.

Thanks everyone for all the advice. I'm going to start with organizing all my documentation properly and then approach the acquiring bank's legal department with a formal written request. If that doesn't work within 30 days, I'll file a complaint with the state banking regulator. Really appreciate all the different perspectives on this - I had no idea there were so many potential approaches to the problem.

One thing I'd add is to check if your state has a specific statute of limitations on how long UCC filings remain effective. In most states, UCC-1 filings lapse after 5 years unless a continuation statement is filed. Since your loan was from 2017 and it's now 2025, the filing might actually be expired already, which could simplify your refinancing situation. Your new lender should be able to verify this, and an expired filing typically doesn't need a formal termination. Worth checking before you go through all the hassle of tracking down the acquiring bank.

Sounds like you've got a solid plan forming. Entity conversion = new UCC-1, careful debtor name verification, broad collateral description for manufacturing inventory, and continuous perfection timing. The key is executing it all flawlessly with that loan amount at stake.

One additional consideration for your manufacturing client - if they have any equipment subject to federal regulations (like FDA equipment for medical devices or OSHA-regulated machinery), make sure your collateral description doesn't conflict with any regulatory restrictions on transfers or liens. I've seen UCC filings challenged where the collateral was subject to special federal oversight. Also, given the substantial loan amount, you might want to consider getting a UCC search done immediately before filing to see what other liens are already on record against both the old LLC and new corporation entities.