Confused about UCC type classifications - which form for equipment lease termination?
I'm handling the termination of a commercial equipment lease and I'm getting conflicting information about which UCC type to use. The original financing statement was filed as a UCC-1 for construction equipment, but now that the lease has ended, I need to properly terminate the lien. Some sources say I need a UCC-3 termination, others mention different UCC type codes depending on the collateral. The equipment includes excavators, bulldozers, and other heavy machinery that was originally financed through a 5-year lease agreement. The lease expired last month and all payments are current. I've been going in circles trying to figure out the correct UCC type classification for this termination. Has anyone dealt with equipment lease terminations and can clarify which specific UCC type form I should be using? I don't want to file the wrong type and have issues with the lien release.
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Jabari-Jo
For equipment lease terminations, you'll definitely need a UCC-3 termination statement. The UCC type doesn't change based on the collateral - it's about the action you're taking. UCC-1 is for initial filings, UCC-3 is for amendments, continuations, and terminations. Since you're terminating the lien, UCC-3 is correct.
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Kristin Frank
•This is exactly right. I just went through this process with excavator financing last quarter. UCC-3 termination was the way to go.
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Micah Trail
•But doesn't the UCC type code vary by state? I thought some states had different numbering systems for different types of collateral.
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Nia Watson
Wait, are you sure about the lease status? If it's a true lease and not a security interest, you might not need to file a termination at all. Equipment leases don't always require UCC filings unless there's a security interest involved. Check your original lease agreement to see if it was actually a secured transaction.
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Seraphina Delan
•The original UCC-1 was definitely filed when we started the lease, so there's definitely a security interest. The financing company required it as part of the lease structure.
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Nia Watson
•OK then yes, you need the UCC-3 termination. Just wanted to make sure you weren't filing unnecessarily.
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Alberto Souchard
•Good catch. I've seen people file terminations when they didn't actually have secured interests to begin with.
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Katherine Shultz
I ran into a similar situation recently and found Certana.ai's document verification tool really helpful. You can upload your original UCC-1 and the termination form you're preparing to make sure all the debtor names and filing numbers match exactly. It caught a small discrepancy in our debtor name that would have caused the termination to be rejected. Really simple to use - just upload the PDFs and it does an automated cross-check.
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Marcus Marsh
•That sounds useful. I've had terminations rejected before because of tiny name differences between the original filing and the termination.
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Katherine Shultz
•Exactly! The tool is great for catching those little inconsistencies that can void the whole termination process.
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Hailey O'Leary
UGH the UCC type system is so frustrating!! I spent HOURS trying to figure out the right codes for my filing. Why can't they just make it simple - termination is termination regardless of what type of equipment it is!
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Cedric Chung
•I feel your pain. The portal interfaces are terrible too. Half the time I can't even find where to select the right UCC type.
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Hailey O'Leary
•YES! And then when you call for help they put you on hold for 45 minutes just to tell you to read the instructions online.
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Jabari-Jo
•The system definitely has room for improvement, but once you know UCC-3 is for terminations, it gets easier.
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Talia Klein
Make sure you have the exact debtor name from the original UCC-1. Equipment terminations get rejected all the time because people don't match the name exactly - even punctuation matters. Pull up your original filing and copy the debtor name character for character.
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Seraphina Delan
•Good point. I'll double-check the original filing. Is there a way to search for the exact UCC-1 record to make sure I have the right information?
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Talia Klein
•Yes, most state filing offices have online search portals where you can look up the original UCC-1 by debtor name or filing number.
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Maxwell St. Laurent
Been filing UCC terminations for 15 years and it's always UCC-3 for equipment lease terminations. The UCC type classification system is standardized across most states - UCC-1 for initial filings, UCC-3 for any changes including terminations. Don't overthink it.
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PaulineW
•That's reassuring to hear from someone with experience. I was getting worried I was missing something important.
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Maxwell St. Laurent
•Nope, straightforward process once you know the basics. Just make sure all your identifying information matches the original filing.
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Annabel Kimball
•Quick question - do you need to wait a certain amount of time after lease expiration before filing the termination?
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Chris Elmeda
I had a similar equipment lease situation last year. One thing to watch out for - make sure you're authorized to file the termination. Sometimes the lessor has to file it, not the lessee. Check who the secured party is on the original UCC-1.
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Seraphina Delan
•Good catch. I'll need to verify who should be filing this. The lease agreement should specify the process for lien release.
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Chris Elmeda
•Exactly. Don't want to spend time preparing a filing that you're not authorized to submit.
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Jean Claude
Actually used Certana's UCC checker for a construction equipment termination last month. Really saved me time because I was able to upload both the original UCC-1 and my draft termination to verify everything matched. The automated verification caught that I had slightly different formatting in the debtor's business name. Super easy process.
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Kristin Frank
•How accurate is the automated checking? I'm always worried about relying on software for something this important.
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Jean Claude
•It's really good at catching the obvious stuff like name mismatches and missing filing numbers. Obviously you still need to review everything yourself, but it's a great first pass.
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Alberto Souchard
Just to clarify the process - you'll file a UCC-3 termination statement, which removes the UCC-1 from the active records. The UCC type for this action is always termination regardless of the collateral type. Heavy equipment, inventory, accounts receivable - doesn't matter, termination process is the same.
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Micah Trail
•That makes sense. I was getting confused thinking different types of collateral required different forms.
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Alberto Souchard
•Common misconception. The UCC type refers to the action (filing, amending, continuing, terminating) not the collateral.
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Charity Cohan
One more thing - double check that your lease didn't have any renewal options that might still be active. If there's a possibility of lease extension, you might want to hold off on the termination until you're absolutely sure the lease relationship is completely ended.
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Seraphina Delan
•The lease definitely expired with no renewal options. All equipment has been returned and final payment processed. Should be clear to proceed with termination.
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Charity Cohan
•Perfect. Then UCC-3 termination is exactly what you need. Just make sure to keep a copy of the filed termination for your records.
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Josef Tearle
•Also recommend checking the termination status online after filing to make sure it processed correctly.
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