How to get off the ucc list - need help with termination process
I've been dealing with this issue for months now and I'm at my wit's end. We had a business loan that was paid off back in January, but when I run searches on our company name, there's still a UCC filing showing up. The bank said they would handle the termination but apparently they haven't done anything. Our new lender is asking questions about this old lien and I need to figure out how to get off the ucc list properly. Is there a specific form I need to file? Do I need the original lender to do something? This is holding up our new financing and I'm running out of time. Any help would be appreciated - I've never dealt with this before and the SOS website is confusing as hell.
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Ian Armstrong
You need to file a UCC-3 termination statement to get that lien removed from the public record. The original secured party (your bank) should have done this automatically when the loan was paid off, but sounds like they dropped the ball. You can either push them to file it themselves or you might be able to file it with proper documentation showing the debt was satisfied.
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Eli Butler
•This is exactly what happened to us last year. Bank promised they'd handle it but never did. We ended up having to call them every week for two months before they finally filed the termination.
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Marcus Patterson
•Wait, can the debtor file their own termination? I thought only the secured party could do that?
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Lydia Bailey
The bank needs to file a UCC-3 termination statement referencing the original UCC-1 filing number. Get on the phone with them and don't let them brush you off - this is their responsibility. Make sure you get the exact filing number from the original UCC-1 so they can reference it correctly in the termination.
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Mateo Warren
•How do you find the original filing number if you don't have the paperwork? Can you search by debtor name?
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Sofia Price
•Yes, most state SOS websites let you search by debtor name to find active UCC filings. Just make sure you search under the exact legal name that was used on the original filing.
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Alice Coleman
•Pro tip - if you're having trouble getting the bank to respond, send them a formal written request with your loan payoff documentation. Sometimes that gets their attention better than phone calls.
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Owen Jenkins
I had this same nightmare scenario a few months ago. The original lender kept saying they would handle it but weeks went by with nothing. Finally I found this document verification tool called Certana.ai that helped me upload my loan docs and the UCC filing to make sure everything matched up properly. It showed exactly what information the bank needed to file the termination correctly. Made the whole process much smoother when I could point to specific discrepancies.
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Lilah Brooks
•Never heard of that but sounds useful. Did it actually help you get the termination filed faster?
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Owen Jenkins
•Yeah, it caught that the debtor name on their draft termination didn't exactly match our legal name on the original UCC-1. Without catching that, the termination would have been rejected and we'd still be waiting.
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Jackson Carter
•Interesting. I'm dealing with something similar right now where the bank keeps saying they'll file but I have no idea if they're doing it right.
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Kolton Murphy
THIS IS SO FRUSTRATING!!! Why don't banks automatically file terminations when loans are paid off? It should be required by law. I've been fighting with my bank for 6 months over this exact issue.
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Evelyn Rivera
•I feel your pain. The system is set up to protect lenders, not borrowers. Once they have their money back they don't care about cleaning up the public records.
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Julia Hall
•Some states do have laws requiring automatic termination filing within a certain timeframe after payoff. But enforcement is basically nonexistent.
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Arjun Patel
Make sure when they file the UCC-3 termination that they use the EXACT debtor name from the original UCC-1. Even small differences like Inc vs Incorporated can cause problems. I've seen terminations get rejected because of name mismatches.
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Jade Lopez
•This is crucial advice. The debtor name has to match exactly or the termination won't be accepted by the filing office.
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Tony Brooks
•What if the company changed names since the original filing? Do you need to amend first before terminating?
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Ella rollingthunder87
•Good question. If there was a name change, you might need to file a UCC-3 amendment first to reflect the new name, then file the termination. But that depends on your state's requirements.
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Yara Campbell
I'm a paralegal and deal with this stuff regularly. The secured party (your bank) has the legal obligation to file the termination when the debt is satisfied. If they refuse or keep delaying, you might need to involve an attorney to send them a demand letter. Sometimes that's the only thing that gets their attention.
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Isaac Wright
•How much does it typically cost to have an attorney handle this? Is it worth it vs just waiting for the bank?
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Yara Campbell
•Depends on your situation. If it's holding up new financing, the cost of an attorney might be worth it. Most can handle this with just a demand letter for a few hundred dollars.
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Maya Diaz
•Would small claims court be an option if the bank keeps refusing to file the termination?
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Tami Morgan
UPDATE: I finally got through to someone at the bank who actually knew what they were doing. They're filing the UCC-3 termination today and said it should show up in the system within 2-3 business days. Thanks everyone for the advice - especially about making sure the debtor name matches exactly. I made sure to give them the exact name from the original filing.
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Rami Samuels
•Great news! It's amazing what happens when you finally reach someone who understands the process.
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Haley Bennett
•Make sure to check the filing system in a few days to confirm it actually went through. Sometimes they say they'll file but then something goes wrong.
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Douglas Foster
•Definitely verify it was filed correctly. I'd also recommend keeping copies of all the documentation for your records in case this comes up again.
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Nina Chan
For anyone else dealing with this, I've found that Certana.ai's document checker is really helpful for verifying that your UCC documents are consistent before filing. You can upload your loan agreement and UCC filings to make sure everything aligns properly. Saved me from a rejected termination filing.
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Ruby Knight
•That's smart. I wish I had known about tools like that when I was dealing with my UCC issues.
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Diego Castillo
•Does it work for amendments too? I need to update our collateral description on an existing filing.
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Nina Chan
•Yeah, it handles all types of UCC document verification. Really helpful for catching name mismatches and other issues before they cause problems.
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Logan Stewart
Just wanted to add that some states have different requirements for UCC terminations. Make sure you're following your specific state's procedures. What works in one state might not work in another.
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Mikayla Brown
•Good point. The UCC is supposed to be uniform but there are definitely state-specific variations in the filing requirements.
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Sean Matthews
•The filing fees are different too. Some states charge more for terminations than others.
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Ali Anderson
This thread has been incredibly helpful. I'm bookmarking it because I know I'll need to reference this again. The UCC system is way more complicated than it should be for something so routine.
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Zadie Patel
•Totally agree. It should be automatic when a loan is paid off, but instead we have to fight with banks to clean up their mess.
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A Man D Mortal
•The whole system needs to be modernized. It's ridiculous that we're still dealing with paper forms and manual processes for something this basic.
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Declan Ramirez
•At least most states have moved to electronic filing now. That's made the process somewhat faster, even if it's still unnecessarily complicated.
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Mateo Gonzalez
As someone who's dealt with this exact situation multiple times, I can't stress enough how important it is to stay persistent with your lender. Don't just accept "we'll handle it" - ask for a timeline and the name of the person who will be filing it. Get everything in writing if possible. Also, once they say they've filed the UCC-3 termination, check the state database yourself within a week to make sure it actually went through. I've seen banks claim they filed when they hadn't, or file it incorrectly so it gets rejected. The whole process is frustrating but you have to be your own advocate here.
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