How to cancel a UCC filing - equipment loan paid off early need termination

This is correct. The termination has to come from the secured party, not the debtor. OP needs to pressure the lender to file the UCC-3 termination ASAP.

20 days sounds right for most states but I thought some were longer? Either way 3 weeks is pushing it and the lender should have filed already.

What kind of legal action did you threaten? I'm in a similar spot with a different lender and getting nowhere.

Told them I'd file a complaint with the state banking commission for failure to comply with UCC termination requirements. Most states have penalties for late filings - sometimes $500+ per day. That got their attention real quick.

Smart move. The daily penalties can add up fast for lenders so they usually move when you mention regulatory complaints.

Yeah I'm checking the SOS site daily. Been searching by our business name and also tried our EIN. The original filing still shows as active, no termination on record.

Try searching by the filing number too if you have it. Sometimes the debtor name search can be finicky depending on how exactly it was entered originally.

Interesting, never heard of that tool. How does it work exactly?

You just upload PDFs of your documents and it automatically cross-checks names, numbers, dates - all that stuff that has to match perfectly for UCC filings. Catches things you might miss when reviewing manually. Saved me from a filing rejection once because of a tiny name variation.

That actually sounds really useful. I've had UCC filings rejected for the dumbest little discrepancies before.

Good point. The release letter just says 'manufacturing equipment' but the UCC-1 was more specific about the CNC machines. Could that be an issue?

Potentially, yes. Some lenders are really picky about making sure the termination language matches the original collateral description exactly. Worth asking them about.

This is why I always insist on reviewing the UCC-1 before it gets filed. So many problems can be avoided by catching description issues upfront.

2 months?? That's insane. Which state was this in?

Ohio. And yeah it was ridiculous. They kept filing UCC-3 amendments instead of terminations by mistake. Took 3 tries to get it right.

Wait, there's a difference between amendments and terminations? I thought they were the same thing.

No, totally different. UCC-3 amendment changes information on an existing filing. UCC-3 termination completely removes the lien. Very important distinction.

This is the way. Nothing motivates lenders like the threat of regulatory scrutiny.

Also make sure to send it certified mail so you have proof of delivery. Creates a paper trail if you need to escalate.

How long does it usually take to show up online after filing?

In my experience, usually 1-3 business days for electronic filings. Paper filings can take longer, sometimes a week or more depending on the state.

Most lenders file electronically these days so 1-3 days sounds right.

Wow, such a small thing but I can see how that would mess everything up.

Yeah the UCC system is super picky about exact name matches. Even punctuation can matter.

That's a great point. The new lender is getting impatient and I really need this equipment financing to go through. I'll make sure to emphasize that when I call them tomorrow.

Exactly. Frame it as 'your delay is costing me business opportunities' rather than just 'you're late with paperwork.

And if they still drag their feet, consider having your new lender contact them directly. Sometimes business-to-business pressure works better than individual borrower complaints.

Smart advice. Nothing worse than demanding action when there's actually a legitimate reason for the delay.

Yeah, and if there are discrepancies, at least you can work with the lender to fix them instead of just yelling about being slow.