UCC Document Community

One more tool that might help - some title companies offer UCC search services at reasonable rates if you're already working with them on the transaction. Might be worth asking if they can bundle it with other closing services.

I've been following this thread and wanted to share my experience as someone who's done both free and paid UCC searches for acquisitions. The free Delaware system can work, but you really need to be strategic about it. I'd recommend creating a comprehensive search plan that includes: 1) All legal entity names and variations, 2) Individual guarantor names if applicable, 3) Searches in all states where the company has operations or assets, and 4) Both UCC and real estate records for fixture filings. Document everything you find and don't find - this creates a paper trail showing you did reasonable due diligence. That said, if this is a significant acquisition, the cost of a professional search service might be worth it for the peace of mind and liability coverage they often provide.

Get this fixed ASAP before your refinancing. Solar panel fixture filing mistakes are super common but can create major lien priority problems. Your equipment lender should refile properly and terminate the incorrect filing.

This is a really common issue with solar installations! I've seen this mistake dozens of times where equipment lenders treat permanently attached solar panels like regular equipment instead of fixtures. Since your panels penetrate the roof membrane, they're definitely fixtures under most state laws. The key test is whether removing them would damage the real estate - roof penetrations clearly meet that standard. You absolutely need a UCC-1 fixture filing that gets recorded in both UCC records AND real estate records to protect priority over existing and future mortgages. Contact your lender immediately to refile correctly and terminate the improper filing - time is critical since priority usually dates back to the original filing date if done quickly. Don't let this slide until your refinancing or you could have serious lien priority issues.

Great thread - this confusion between termination and subordination trips up so many people. One thing I'd add is timing considerations. If you're dealing with a buyer who's lined up and pushing for quick resolution, make sure you understand the closing timeline. UCC-3 terminations usually take 1-3 business days to process depending on the state, but if you need subordination agreements between multiple parties, that could take weeks to negotiate and execute. Also, since you mentioned the equipment might be refinanced, the new lender will likely require their own UCC-1 to be filed and perfected before they fund. Coordinate with all parties to make sure the termination, new financing, and sale (if applicable) happen in the right sequence so nobody's left without security during the transition.

As someone new to UCC filings, this thread has been incredibly helpful in clarifying the termination vs subordination distinction. I've been wrestling with a similar situation involving equipment financing, and I kept seeing both terms used interchangeably in various resources online. The key takeaway I'm getting is that it all comes down to whether the secured party wants to maintain ANY interest in the collateral - if they're being paid off completely, it's termination; if they're just changing position, it's subordination. One question I have though - when you file a UCC-3 termination, is there a standard grace period or any way to reverse it if you discover you made an error, or is it truly permanent once filed? Also, given all the discussion about document verification, would it be wise to pull UCC searches on our own filings periodically to make sure everything is showing up correctly in the public records?

One more tip - after you file the termination and get confirmation, do a follow-up UCC search in a few weeks to make sure it actually cleared from the records. I've heard of rare cases where terminations were accepted but didn't properly update the database for some reason.

Great thread everyone! Just to add one more practical tip - when you're gathering all the documents for your UCC termination, create a simple checklist to make sure you have everything: 1) Copy of original UCC-1 filing (get this from state records if needed), 2) Lender's satisfaction letter or authorization, 3) Loan payoff documentation, and 4) Completed UCC-3 termination form. Having everything organized upfront will save you time and reduce the chance of errors. Also, if you're working with an attorney on this, ask them to walk you through the process once - it's simpler than it seems and good knowledge to have for future deals.

One more thing - keep a copy of the filed UCC-3 termination for your records. Some auditors want to see proof that liens were properly released on paid-off loans. Documentation is key.

This thread has been super helpful! As someone new to handling UCC releases, I was wondering - is there a standard timeframe for how long it takes for the UCC-3 termination to show up in the public records after filing? I want to be able to tell my borrower when they can expect to see the lien released if they check online.