UCC Document Community

OP, sounds like you're on the right track asking these questions upfront. Most UCC s9-609(b)(2) problems happen when people rush the process. Take your time, follow the statutory requirements, and document everything. The equipment isn't going anywhere while you get the paperwork right.

Just wanted to add my experience with UCC s9-609(b)(2) compliance - the timing really is critical. I've handled several equipment repos and always send the notice by certified mail with return receipt requested at least 10 days before any planned sale. Also make sure to include the debtor's right to an accounting of the unpaid indebtedness and charges. For $180k worth of equipment, I'd also recommend getting a professional appraisal before the sale to help justify the sale price if challenged later. The cooperative debtor attitude is good, but don't let that make you complacent on following proper procedures.

One final tip - get everything reviewed by qualified counsel before closing. With $2.8M on the line, the legal review cost is worth it for peace of mind. They can spot issues you might miss and ensure everything complies with both UCC requirements and your state's specific rules.

Great discussion here! Just wanted to add one practical point from a recent deal - when you're dealing with multiple members in an LLC, I always request a certified copy of the member resolution authorizing the specific person to sign financing documents. Even if someone has general signing authority, having a specific resolution for the transaction provides extra protection. Also, for your $2.8M deal, consider having the signing party provide a certificate of good standing for the LLC - it's not required by the UCC but many lenders want it to confirm the entity is still validly existing at closing. Good luck with your deal!

I had a similar issue with PayPal Working Capital about 6 months ago. What finally worked for me was sending a formal demand letter via certified mail to their legal department, not just calling customer service. I included copies of my payoff documentation, referenced the specific UCC-1 filing number, and cited my state's requirements for timely termination of security interests. I also mentioned that continued delay could result in damages to my business and that I would hold them liable for any financing opportunities lost due to their failure to file the required UCC-3 termination. Within two weeks of receiving the certified letter, they filed the termination statement. Sometimes you need to approach it from a legal compliance angle rather than just customer service requests. The key is making it clear that you understand your rights and their obligations under the UCC.

I'm dealing with a similar UCC lien issue right now with a different fintech lender, and this thread has been incredibly eye-opening. It's frustrating how these alternative lenders seem to have no standardized process for UCC-3 terminations after payoff. Traditional banks handle this automatically, but these newer companies treat it like an afterthought. I'm definitely going to try the "secured transactions department" approach and the certified mail to legal department strategy. It's concerning how many businesses are probably stuck with these phantom liens on their credit reports without even realizing it. Has anyone here had success getting retroactive damages from a lender for delayed UCC terminations? My situation has been dragging on for over 60 days and I've already lost one financing opportunity because of it.

This is a really common source of confusion! For your construction equipment (excavator and dump truck), you're definitely dealing with title liens rather than UCC-1 filings. Since these are motor vehicles, the security interest gets perfected by recording a lien directly on the certificate of title through your state's DMV system, not through UCC filings with the Secretary of State. The lender should coordinate this process with the equipment dealer at closing, but I'd recommend asking them specifically about the timeline and which party handles the DMV paperwork. Make sure they're already registered as an approved lienholder with your state's DMV to avoid any delays. This is actually simpler than UCC filings in many ways - no debtor name matching issues and no need for continuation filings every five years.

I went through this exact same situation with my landscaping business last year! The term "non-UCC filing" is definitely confusing - it basically means any security interest that gets perfected through a system other than UCC-1 filings. For your excavator and dump truck, you're looking at certificate of title liens since they're motor vehicles. The good news is this is actually more straightforward than UCC filings once you understand it. The lender will have their lien recorded directly on the vehicle titles through your state's DMV system. Just make sure to ask your lender for a clear timeline of when this needs to happen relative to when you take possession of the equipment. Most dealers are used to coordinating this process, but it helps to have everyone on the same page about timing so your deal doesn't get held up.

I just went through this exact scenario with a different equipment lender and it's frustrating how common this is. One thing that really helped speed up my case was using a document verification service to spot discrepancies before escalating. I uploaded my loan docs and UCC filings to check for any mismatches that might be causing their automated termination system to fail. Turned out there was a slight difference in how my business entity name was formatted between the original loan and the UCC filing - something like "ABC Services LLC" vs "ABC Services, LLC" with the comma. Once I pointed out this specific issue in my demand letter, they were able to fix it much faster than when I was just asking them to "look into it" generally. Also, definitely check both state and county records for any fixture filings if your solar panels are permanently attached to the building. Texas requires dual filing for fixtures in many cases, so there could be multiple UCCs that need termination. Don't give them any more time to drag their feet - three weeks is already too long for what should be a routine administrative task.

I'm dealing with a similar UCC release issue right now with a different lender, and this thread has been incredibly helpful. One thing I'd add is to also check if your loan servicer changed during the life of the loan - sometimes UCC releases get stuck when there's been a transfer of servicing rights and the new servicer doesn't have proper authorization to file terminations. You might need to track down who actually holds the lien rights now vs. who you've been dealing with for customer service. Also, if you're planning to apply for new credit soon, consider getting a UCC search report from a commercial service to have official documentation of what's currently filed against your business. This can help speed up underwriting for your new credit line even while you're still fighting to get the old lien terminated. The fact that you paid off in November and it's now mid-January means you're well past any reasonable timeframe for automatic processing.