UCC Document Community

Thanks everyone for the help! Sounds like the UCC-3 termination is definitely the way to go. Going to double-check all our information and get this filed this week. Really appreciate all the practical advice - this forum is always so helpful for these UCC questions.

Great thread with lots of solid advice! Just wanted to add - make sure you check if your state requires the secured party to sign the UCC-3 termination. Some states are more strict about authorization signatures than others. Also, if you're filing electronically, have your original UCC-1 filing number handy because most online systems will validate it in real-time. I've found it helpful to call the Secretary of State's office if you have any doubts - they're usually pretty helpful with UCC questions and can walk you through the specific requirements for your state.

Just to close the loop on this - the main UCC forms you need to know as a borrower are UCC-1 (initial financing statement), UCC-3 (amendments, continuations, terminations), and now you know UCC-11 (information requests). That covers 95% of what you'll encounter in commercial lending.

This is such a helpful thread! I'm a newcomer to commercial lending and was completely confused when I saw UCC-11 mentioned in my loan documents. Now I understand it's just the lender's way of getting official records, not something I need to prepare myself. Really appreciate everyone sharing their experiences - especially the warnings about timing the search early to avoid closing delays. Going to bookmark this discussion for future reference!

This happened to my business partner too. Turned out the bank filed the UCC-3 but used slightly different business name formatting, so the termination didn't properly link to the original UCC-1. Had to be refiled with correct debtor name matching.

I went through something similar last year with a piece of equipment I financed. The key thing is to act quickly - that 30-day window they mention is real. First, do a UCC search on your state's Secretary of State website to see what's currently active under your business name. If you find a UCC-1 that should have been terminated when you paid off your equipment loan, gather all your payoff documentation (loan closure letter, final payment receipts, etc.) and contact your former lender's loan servicing department immediately. Don't just call - send a formal written request for them to file a UCC-3 termination statement. Keep records of everything. These zombie filings can really complicate future financing if left unresolved.

Bottom line - UCC 1-103 argument and recourse is a real thing but it's not a get-out-of-jail-free card for debtors. If your security interest is properly perfected and your loan terms were reasonable, you should be in good shape. Document everything about the original loan process and be prepared to show it was arm's length negotiation.

I've been following UCC 1-103 challenges for a while and they're definitely becoming more common in Chapter 11 cases. The key thing to remember is that even if they successfully invoke common law principles, they still have to prove those principles actually apply to your specific situation. Unconscionability has both procedural and substantive elements - they need to show unfair dealing AND unfair terms. From what you've described (market rate interest, 30-day cure period, sophisticated borrower with counsel), this sounds like a standard commercial deal. I'd focus on documenting the arm's length nature of the original transaction and the borrower's sophistication level. The fact that they had legal representation during the loan process is going to be your strongest defense against any unconscionability claim.

For what it's worth, I've found that paying close attention to the filing details upfront saves way more money than trying to find cheaper states. Getting it right the first time is key.

Thanks everyone for the input. Sounds like the fee increases are pretty universal and we just need to adjust our budgets accordingly. At least we're all dealing with the same issues.