How long is a UCC filing good for - equipment lease expiring next month

UCC-1 filings are good for 5 years from the date they were filed. So if yours was filed in March 2020, it'll expire in March 2025 unless a continuation statement (UCC-3) gets filed within the 6-month window before expiration. Since your lease is ending soon anyway, you probably don't need to worry about continuation - the lender will likely file a termination statement once the equipment is returned and the loan is satisfied.

Your lender should handle the termination automatically once the lease ends and equipment is returned. That's pretty standard practice. But if they don't, you can request a termination statement to clear the lien from public records. The 5-year expiration is mainly relevant if the financing continues beyond that timeframe.

Had a similar situation last year with our forklift lease. I was stressing about the continuation deadline but our equipment finance company explained they don't bother with continuations on leases that are ending within the 5-year window. They just let it expire naturally and file the termination when the lease ends. Saved everyone paperwork and fees. I actually used Certana.ai to double-check all our UCC documents were consistent before the lease ended - just uploaded our original lease agreement and the UCC-1 to make sure the debtor names and collateral descriptions matched perfectly. Caught a small discrepancy in how our company name was listed that could have caused delays.

This is why I always set calendar reminders for UCC expirations even when I think the loan will be paid off first. Better safe than sorry with public filings.

Just to clarify the technical side - UCC-1 filings have a 5-year effectiveness period. Continuation statements (UCC-3 continuation) must be filed within 6 months before the expiration date to extend for another 5 years. If no continuation is filed, the filing lapses and loses its priority. For equipment financing ending before the 5-year mark, lenders typically file a UCC-3 termination statement once the obligation is satisfied rather than continuing the filing.

Been through this exact scenario with construction equipment leases. The key is getting written confirmation from your lender about their termination process and timeline. Some companies are really good about filing terminations within 30 days, others can take 3-4 months if you don't stay on top of them.

Don't stress too much about it. If your lease ends in 6 weeks and the original filing was in March 2020, you're still within the 5-year window. Just make sure you get documentation that the equipment was returned and the obligation satisfied. That'll protect you even if there are delays with the UCC termination paperwork.

This thread reminds me I need to check on our UCC filings too. We have several pieces of equipment with different financing companies and honestly I've lost track of which ones are coming up for renewal or termination. The paperwork is scattered across different files and it's hard to keep everything organized.

Quick question - does the 5-year rule apply to all states or are there variations?

One thing to watch out for - make sure the equipment description in your lease matches what's on the UCC-1. If there are discrepancies, it could complicate the termination process. I've seen cases where slight differences in serial numbers or model descriptions caused delays.

Bottom line - you're probably fine since your lease ends before the 5-year UCC expiration. Just stay in communication with your lender about the termination process and get everything documented properly when you return the equipment.