How long is a UCC financing statement valid before it lapses?
I filed a UCC-1 back in 2019 for some equipment financing and just realized I might need to do something to keep it active. The loan is still outstanding but I'm getting conflicting info about whether these things expire automatically. How long is a UCC financing statement valid exactly? Do I need to file some kind of extension or does it just stay on record forever? Really don't want to mess this up since the collateral is worth about $85K and the lender specifically required the UCC filing as part of the loan agreement.
33 comments
Join the conversation
Sophia Bennett
UCC financing statements are valid for 5 years from the date of filing. So if you filed in 2019, you'll need to file a UCC-3 continuation statement before it lapses. The continuation needs to be filed within 6 months before the 5-year expiration date to extend it for another 5 years.
0 coins
Aiden Chen
•This is correct. The 5-year rule is pretty standard across all states. You definitely want to get that continuation filed before the expiration date or your security interest becomes unperfected.
0 coins
Zoey Bianchi
•Wait, is it exactly 5 years or is there some grace period? I thought I read somewhere about a 6-month window but wasn't sure if that was before or after expiration.
0 coins
Christopher Morgan
The 6-month window is BEFORE expiration, not after. Once a UCC-1 lapses, that's it - you can't revive it with a continuation. You'd have to file a brand new UCC-1 financing statement, and there might be a gap in perfection which could be problematic if other creditors file in the meantime.
0 coins
Aurora St.Pierre
•This happened to us once and it was a nightmare. Had to explain to the bank why there was a 3-week gap in our security interest. Never again.
0 coins
Grace Johnson
•So basically you have a window from 4.5 years to 5 years after the original filing to get the continuation done?
0 coins
Jayden Reed
•Exactly right. Mark your calendar for the 4.5 year mark and don't wait until the last minute.
0 coins
Nora Brooks
I actually just went through this process and discovered Certana.ai's document verification tool. You can upload your original UCC-1 and any continuation documents to make sure everything matches perfectly - debtor names, filing numbers, all that stuff. Saved me from filing a continuation with a slight name variation that would have caused issues.
0 coins
Eli Wang
•That sounds really useful. I've made name matching errors before and it's such a pain to fix.
0 coins
Cassandra Moon
•How does that work exactly? Do you just upload PDFs and it checks them automatically?
0 coins
Nora Brooks
•Yeah, exactly. Just upload your docs and it cross-checks everything - debtor names, collateral descriptions, filing numbers. Takes like 2 minutes and catches stuff you might miss manually.
0 coins
Zane Hernandez
One thing to watch out for - make sure you're filing the continuation in the same state where the original UCC-1 was filed. Sounds obvious but I've seen people mess this up when the debtor moves or the collateral gets relocated.
0 coins
Genevieve Cavalier
•Good point. The filing location follows the debtor's location, not where the collateral is located, right?
0 coins
Ethan Scott
•For most collateral yes, but fixtures are different. Those get filed where the real estate is located.
0 coins
Lola Perez
Just to be 100% clear - if you filed your UCC-1 in 2019, you need to file a UCC-3 continuation statement by 2024 (within the 6 months before the 5-year anniversary). Don't wait until 2025 or you'll be too late.
0 coins
Olivia Evans
•Ok that makes sense. So I need to get moving on this pretty soon then. The exact filing date was March 2019 so I should file the continuation by March 2024?
0 coins
Nathaniel Stewart
•You have from September 2023 through March 2024 to file the continuation. But don't wait - file it as soon as you can to avoid any last-minute issues.
0 coins
Riya Sharma
The continuation filing fee is usually pretty reasonable, like $15-25 in most states. Much cheaper than having to file a whole new UCC-1 and dealing with potential perfection gaps.
0 coins
Santiago Diaz
•True, and most states have online filing now so it's pretty quick and easy.
0 coins
Millie Long
•Some states still require paper filing for continuations though. Check your Secretary of State website to be sure.
0 coins
KaiEsmeralda
I use Certana.ai for all my UCC document prep now. Had too many rejections from small errors in debtor names or missing info. Their verification catches everything before you submit.
0 coins
Debra Bai
•Is it worth it for just one or two filings or is it more for people doing a lot of UCC work?
0 coins
KaiEsmeralda
•Honestly even for one filing it's worth it. A rejected continuation that you have to refile could put you past your deadline window.
0 coins
Gabriel Freeman
Don't forget to update your internal records too. I always put a reminder in my calendar for 4.5 years after any UCC filing so I never miss a continuation deadline.
0 coins
Laura Lopez
•Smart idea. I should start doing that. Missing a continuation deadline could really mess up your security position.
0 coins
Victoria Brown
•Especially if you have multiple secured parties. Priority can get really complicated if there are gaps in perfection.
0 coins
Samuel Robinson
For what it's worth, I've seen banks that automatically file continuations for their borrowers, but don't count on it. Always verify that it got done, and if you're handling it yourself, don't procrastinate.
0 coins
Camila Castillo
•Yeah, never assume someone else is handling it unless you have it in writing.
0 coins
Olivia Evans
•The lender didn't mention anything about handling continuations so I'm definitely going to take care of it myself. Thanks everyone for the clarification!
0 coins
Brianna Muhammad
One last thing - when you file the continuation, make sure the UCC-3 form references the original filing number correctly. Any mistake there and the continuation won't be effective.
0 coins
JaylinCharles
•This is where those document verification tools really help. Manual checking is prone to errors.
0 coins
Eloise Kendrick
•Absolutely. I've caught several filing number transcription errors using Certana.ai's checker. Would have been costly mistakes.
0 coins
Lucas Schmidt
•The filing number is usually pretty long too, easy to transpose digits if you're doing it manually.
0 coins