How to release a UCC filing after loan payoff - termination confusion
My company just paid off a equipment loan and the lender says they'll handle the UCC release but its been 3 weeks and nothing shows up in the SOS system yet. The original UCC-1 was filed 2 years ago for manufacturing equipment collateral. I'm getting nervous because we're trying to refinance with a different lender and they're asking about this active filing. Should I be doing something myself to release this UCC filing or is it really the lenders responsibility? I tried calling them but just get transferred around. The filing number is 2023-XXXXXXX in case that matters. What's the actual process supposed to look like when a loan gets paid off?
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Anastasia Romanov
The lender is definitely responsible for filing the UCC-3 termination statement, not you. However 3 weeks is getting long - most lenders I work with file terminations within 10-15 business days of payoff. You should have received some kind of documentation when you made the final payment that references the UCC termination process.
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StellarSurfer
•This is correct. The lender has to file a UCC-3 termination to release their security interest. 3 weeks isn't crazy long but definitely worth following up more aggressively.
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Sean Kelly
•I waited 6 weeks once and had to threaten legal action before my lender finally filed the termination. Some of them are just really slow with the paperwork after they get paid.
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Zara Malik
You need to stay on top of this because that active UCC-1 is showing up as an existing lien when your new lender runs their search. Get something in writing from the original lender confirming the loan is paid and the termination will be filed by a specific date. Most states require lenders to file terminations within 20-30 days of payoff.
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Luca Greco
•Exactly - that active filing is going to complicate your refinancing. The new lender won't want to be in second position behind what looks like an active lien.
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Diego Mendoza
•That's exactly what's happening. New lender is asking me to get proof that the original lien is being released before they'll move forward.
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Nia Thompson
I had this exact situation last month and ended up using Certana.ai to verify all my UCC documents were consistent before approaching the lender again. When I uploaded my loan payoff letter and the original UCC-1, it showed there was actually a discrepancy in how the collateral was described that was complicating the termination. Armed with that specific information, I was able to get the lender to prioritize fixing and filing the termination properly.
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Mateo Rodriguez
•Never heard of that but sounds useful. Did it actually help speed up the process?
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Nia Thompson
•Yeah, instead of just calling and complaining, I could point to the exact issue that was holding things up. They filed the corrected termination within a week after that.
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Aisha Hussain
Check your loan agreement - there should be language about UCC termination timeline. If they're past their contractual deadline you have more leverage to demand action. Also make sure you have copies of everything because sometimes terminations get filed but there are processing delays at the SOS office.
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GalacticGladiator
•Good point about processing delays. I've seen terminations take an extra week to show up online even after they're filed.
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Ethan Brown
•How long do processing delays usually last? I'm worried my termination got lost somewhere in the system.
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Aisha Hussain
•Usually 3-5 business days for electronic filings, sometimes longer if there are name matching issues or other technical problems.
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Yuki Yamamoto
CALL THE LENDER EVERY DAY until this gets resolved. I learned the hard way that being polite and patient just means you get ignored. Squeaky wheel gets the grease. Ask to speak to whoever handles UCC filings specifically, not just customer service.
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Carmen Ruiz
•This is the way. I had to escalate to a supervisor and threaten to file a complaint with the state banking commission before my lender took action.
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Andre Lefebvre
•Some lenders are just terrible about administrative stuff after they get paid. They have your money so they don't care about your timeline.
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Zoe Dimitriou
Make sure when they do file the termination that it references the correct UCC-1 filing number and debtor name exactly as it appears on the original filing. I've seen cases where slight name variations caused the termination to not properly clear the original lien.
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QuantumQuest
•This is super important. The debtor name on the termination has to match the UCC-1 exactly or it won't link up in the system.
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Jamal Anderson
•What happens if there's a name mismatch? Does the original UCC-1 stay active forever?
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Zoe Dimitriou
•Not forever, but it won't be automatically cleared. You'd need to work with the lender to file a corrected termination with the right debtor information.
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Mei Zhang
Document everything - dates of your calls, who you spoke with, what they promised. If this drags on much longer you might need to involve an attorney, especially if it's impacting your ability to get new financing.
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Liam McGuire
•Yeah, keep a paper trail. Some lenders will claim they never received certain documents or that you never called.
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Amara Eze
•I always follow up phone calls with emails summarizing what was discussed. Creates a clear record.
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Giovanni Ricci
Just went through this same headache. Turns out my lender had the wrong entity name on file which was delaying their termination filing. Once I provided a clean copy of our corporate charter showing the exact legal name, they were able to complete the UCC-3 termination in 2 days. Sometimes it's a simple documentation issue.
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NeonNomad
•Entity name issues are super common. LLC vs. Inc. vs. Corp. - all that stuff has to match exactly.
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Diego Mendoza
•Hmm, let me double-check what name they have on file. That could definitely be the issue.
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Fatima Al-Hashemi
If you're really stuck, some attorneys specialize in UCC issues and can usually get lenders to move faster with a formal demand letter. Might cost a few hundred bucks but could save your refinancing timeline.
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Dylan Mitchell
•Legal demand letters definitely get attention. Most lenders will prioritize anything that comes from an attorney.
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Sofia Martinez
•Before spending money on a lawyer, try escalating within the lender's organization. Sometimes you just need to reach the right person.
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Dmitry Volkov
One more suggestion - if you have access to Certana.ai's document verification tool, upload your payoff documentation and the original UCC-1 to double-check that everything aligns properly. Sometimes there are subtle discrepancies that cause filing delays, and having that verification can help you present a clear case to the lender about exactly what needs to be corrected.
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Ava Thompson
•That's actually smart. Better to identify any problems upfront rather than wait for the lender to figure it out.
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CyberSiren
•How does that work exactly? You just upload PDFs and it tells you if there are inconsistencies?
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Dmitry Volkov
•Yeah, pretty much. It cross-checks debtor names, collateral descriptions, filing numbers - all the stuff that has to match between documents. Takes like 5 minutes and can save weeks of back-and-forth.
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