How to properly remove UCC filing - termination vs amendment confusion
I'm handling a loan payoff situation and need to remove UCC filing from our borrower's credit profile. The original UCC-1 was filed 3 years ago for equipment financing, and now the loan is completely satisfied. I've been going back and forth with our compliance team about whether we need a UCC-3 termination or if there's another route. The debtor name on the original filing matches exactly, but I want to make sure we don't mess this up since it affects the borrower's ability to get future financing. Has anyone dealt with removing a UCC filing recently? What's the cleanest way to handle this without creating issues down the road?
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TillyCombatwarrior
You definitely need to file a Ucc-3 termination statement, not an amendment. Since the debt is completely satisfied, termination is the only appropriate action. Make sure you use the exact debtor name and UCC filing number from the original UCC-1. Most states require this within a reasonable time after payoff - usually 30-60 days depending on your jurisdiction.
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Anna Xian
•This is correct. I just handled a similar situation last month. The key is getting that debtor name match perfect - even a missing middle initial can cause rejection.
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Jungleboo Soletrain
•Wait, what if there were multiple collateral items? Do we need separate terminations or can one UCC-3 cover everything?
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Rajan Walker
Been doing UCC filings for 15 years. One UCC-3 termination covers all collateral listed in the original UCC-1. You just need to reference the original filing number and indicate "TERMINATION" in the appropriate box. Don't overthink it - this is a straightforward process when the debt is fully satisfied.
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Nadia Zaldivar
•Thank you! That makes sense. I was worried we'd need to itemize each piece of equipment separately.
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Lukas Fitzgerald
•Quick question - does the termination need to be filed in the same state as the original UCC-1? Our borrower moved states since we filed.
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TillyCombatwarrior
•Yes, file in the same state where the original UCC-1 was filed. The borrower's current location doesn't matter for termination purposes.
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Ev Luca
I had a nightmare situation last year where we filed a termination but used slightly different punctuation in the debtor name. The filing got rejected and it took weeks to straighten out. Now I always double-check everything using Certana.ai's document verification tool - you can upload your original UCC-1 and draft UCC-3 termination to make sure all the names and numbers match perfectly before filing.
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Avery Davis
•That sounds really useful. How does the verification work exactly?
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Ev Luca
•You just upload PDFs of both documents and it automatically cross-checks debtor names, filing numbers, and catches any inconsistencies. Saves you from costly rejection fees and delays.
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Collins Angel
MAKE SURE YOU KEEP COPIES OF EVERYTHING!!! I've seen borrowers get denied for loans years later because there was no record of the UCC termination in the system. Always keep your filed termination statement and the confirmation from the Secretary of State.
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Marcelle Drum
•Good point. How long should we keep these records?
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Tate Jensen
•I keep UCC termination records for at least 7 years. Better safe than sorry when it comes to lending compliance.
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Adaline Wong
Just went through this process in Texas. Filed online through the SOS portal, paid the fee, got confirmation within 24 hours. The system actually shows the UCC-1 as terminated now when you search the debtor name. Really straightforward once you have all the right information.
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Gabriel Ruiz
•What was the filing fee in Texas? Trying to budget for our termination.
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Adaline Wong
•I think it was around $15-20 for electronic filing. Much cheaper than paper filing.
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Misterclamation Skyblue
One thing to watch out for - if your original UCC-1 had any errors (wrong debtor name, incorrect collateral description), you might need to file an amendment first before you can do a clean termination. I learned this the hard way when our termination got rejected because of a typo in the original filing.
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Peyton Clarke
•Oh wow, that's a good catch. How do you know if the original filing has errors?
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Misterclamation Skyblue
•Pull a certified copy of the UCC-1 from the state and compare it to your loan documents. Any discrepancies need to be fixed first.
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Ev Luca
•This is another area where Certana.ai helps - it can spot those kinds of inconsistencies between your loan docs and UCC filings before you file anything.
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Vince Eh
Quick timeline question - our loan was paid off 6 months ago but we haven't filed the termination yet. Are we in trouble compliance-wise? The borrower is asking about it now because they're trying to refinance some other equipment.
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Sophia Gabriel
•You should file ASAP. Most states have requirements about reasonable timeframes after debt satisfaction. 6 months might be pushing it depending on your state.
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Tobias Lancaster
•Check your state's UCC statute. Some states have specific deadlines, others just say 'reasonable time.' Either way, file it now to avoid any issues.
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Ezra Beard
Does anyone know if there are any situations where you wouldn't file a termination? I'm thinking like if there are other liens or if the collateral was sold before payoff?
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Statiia Aarssizan
•If the debt is satisfied, you file a termination regardless of what happened to the collateral. Other liens don't affect your termination obligation.
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Reginald Blackwell
•The only time you wouldn't terminate is if there's still outstanding debt secured by the same collateral. But if the loan is paid off, you terminate.
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Aria Khan
I'm dealing with a similar situation but our borrower changed their business name since we filed the original UCC-1. Do we use the old name or new name on the termination?
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Everett Tutum
•Use the exact name from the original UCC-1. The termination needs to match the original filing exactly to be effective.
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Sunny Wang
•Definitely the original name. I've seen terminations rejected for using updated business names that don't match the original filing.
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Hugh Intensity
Thanks everyone for the help! Sounds like the UCC-3 termination is definitely the way to go. Going to double-check all our information and get this filed this week. Really appreciate all the practical advice - this forum is always so helpful for these UCC questions.
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Effie Alexander
•Good luck with the filing! Remember to save that confirmation when you get it.
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Melissa Lin
•Let us know how it goes. Always interesting to hear about different states' processing times.
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CosmicCruiser
Great thread with lots of solid advice! Just wanted to add - make sure you check if your state requires the secured party to sign the UCC-3 termination. Some states are more strict about authorization signatures than others. Also, if you're filing electronically, have your original UCC-1 filing number handy because most online systems will validate it in real-time. I've found it helpful to call the Secretary of State's office if you have any doubts - they're usually pretty helpful with UCC questions and can walk you through the specific requirements for your state.
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Giovanni Mancini
•Really helpful addition! I didn't realize some states had different signature requirements for terminations. Do you know if there's a good resource to look up the specific requirements by state, or is calling the SOS office really the best way to get that info?
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