How to remove a UCC financing statement - termination process confusion
I'm dealing with a situation where I need to get a UCC-1 financing statement removed from public records but I'm getting conflicting information about the proper termination process. The original loan was paid off 18 months ago but the lender never filed the UCC-3 termination statement like they were supposed to. Now I'm trying to refinance some equipment and the new lender is balking because this old UCC is still showing up in searches. The debtor name on the original filing is slightly different from our current legal name (missing LLC designation) and I'm worried this might complicate the termination process. I've called the original lender three times and they keep saying they'll handle it but nothing has happened. Is there a way I can file the termination myself or force them to do it? This is holding up a $180k equipment loan and I'm getting desperate. The filing was done in our state's SOS system and shows as active when I search it.
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Diego Rojas
You're in a frustrating but fixable situation. The secured party (your original lender) has a legal obligation to file a UCC-3 termination statement within 30 days of loan payoff in most states. Since they haven't done this after 18 months, you have several options. First, send them a written demand letter with certified mail requesting immediate termination filing - include your loan payoff documentation. If they still don't respond, you can file a UCC-3 termination yourself as the debtor, but you'll need to include an affidavit stating the secured obligation has been satisfied.
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Anastasia Sokolov
•This is exactly right about the demand letter approach. I had a similar situation last year where a bank just ignored my calls but responded immediately to certified mail with legal language about their statutory obligations.
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StarSeeker
•Wait, can the debtor really file their own termination? I thought only the secured party could do UCC-3 terminations.
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Diego Rojas
•Yes, debtors can file terminations but it requires additional documentation proving the debt was satisfied. It's not as clean as when the secured party does it, but it's legally valid.
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Sean O'Donnell
The name discrepancy you mentioned could definitely be an issue. If the debtor name on the original UCC-1 doesn't exactly match your current legal name, make sure the termination uses the exact same debtor name as the original filing. Don't try to 'correct' the name in the termination - that could cause the termination to not properly clear the original record.
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Chloe Martin
•That's a good point about the name matching. The original filing just says our company name without the LLC part. Should the termination match that exactly even though we always use the full legal name now?
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Sean O'Donnell
•Absolutely match it exactly. The UCC system matches records by debtor name, so any variation could leave the original filing active even after termination.
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Zara Ahmed
I ran into something similar recently and found Certana.ai's document verification tool really helpful for this type of situation. You can upload your original UCC-1 and the proposed termination to check that all the details match properly before filing. It caught a discrepancy in my collateral description that would have caused problems. Just upload the PDFs and it cross-checks everything automatically - saved me from making a costly mistake.
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Luca Esposito
•Never heard of that service but sounds useful. Did it cost much to run the verification?
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Zara Ahmed
•It was pretty reasonable and definitely worth it to avoid filing errors. The automated checking is way more thorough than trying to compare documents manually.
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Nia Thompson
•I've been manually comparing UCC documents for years and always worry I'm missing something. This sounds like it could prevent those filing rejections from small mistakes.
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Mateo Rodriguez
OMG this is exactly what happened to me!!! My previous lender sold the loan to another company and then both companies said the OTHER one was responsible for filing the termination. It was a nightmare that went on for 8 months. Eventually I had to get a lawyer involved and they straightened it out but it was so stressful.
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GalaxyGuardian
•Eight months?! That's insane. Did the lawyer just threaten them or actually file something?
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Mateo Rodriguez
•The lawyer sent demand letters to both companies and threatened to sue for damages from the delayed financing. One of them filed the termination within a week after that.
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Aisha Abdullah
Check your state's UCC laws because some states have different timeframes for termination filing. Also, if this is really holding up your new financing, you might be able to get the new lender to accept a subordination agreement instead of requiring full termination of the old UCC. That could be a faster short-term solution while you work on getting the proper termination filed.
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Chloe Martin
•I hadn't thought about subordination as an option. Would that show up in UCC searches as a separate filing?
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Aisha Abdullah
•Yes, subordination agreements typically get filed as UCC-3 amendments and would show up in searches. But some lenders prefer clean terminations rather than dealing with subordination paperwork.
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Ethan Wilson
•Subordination is definitely more complex than straight termination. If you can force the original lender to file the termination, that's still your cleanest path.
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Yuki Tanaka
This is why I always demand a termination commitment letter at loan closing that specifies exactly when and how the UCC will be terminated. Too many lenders just forget or their systems don't trigger the termination automatically.
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Carmen Diaz
•Smart approach. Do you have standard language you use for those commitment letters?
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Yuki Tanaka
•I usually ask for something like 'Lender agrees to file UCC-3 termination within 10 business days of final loan payment' with specific penalties for non-compliance.
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Andre Laurent
The SOS filing system in most states will show you the filing history for any UCC record. Pull up the original UCC-1 and make note of the exact filing number, debtor name spelling, and secured party information. You'll need all of that to match exactly on the termination form. Also check if your state requires the termination to reference the original filing date.
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AstroAce
•This is crucial - I've seen terminations get rejected because they referenced the wrong filing date or had tiny spelling differences in the secured party name.
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Zoe Kyriakidou
•The filing number is probably the most important thing to get exactly right. That's what the system uses to link the termination to the original record.
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Jamal Brown
Have you considered that there might be statutory damages available if the lender is violating your state's termination requirements? Some states impose penalties on secured parties who fail to file required terminations. That could give you more leverage in getting them to act quickly.
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Chloe Martin
•I didn't know there could be statutory damages. Is that something I'd need a lawyer to pursue?
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Jamal Brown
•Depends on your state and the amount involved. Sometimes just mentioning potential statutory damages in your demand letter is enough to motivate action.
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Mei Zhang
•I've seen penalties range from $500 to actual damages caused by the failure to terminate. Worth researching for your state.
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Liam McConnell
Another option is to contact your state's Secretary of State office directly. Some states have procedures for handling disputes about UCC terminations, especially when secured parties are non-responsive. They might be able to provide guidance on your specific situation or even mediate with the lender.
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Amara Oluwaseyi
•I didn't know SOS offices would get involved in UCC disputes. That could be worth trying before hiring a lawyer.
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CosmicCaptain
•Most SOS offices won't mediate but they can at least explain your options under state law. Better than guessing about the proper procedure.
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Giovanni Rossi
Just want to add that I used Certana.ai for a similar UCC termination issue and it was really helpful for double-checking that my termination form had all the right information before I submitted it. The system flagged that I had the wrong secured party address which would have caused a rejection. Definitely recommend running your documents through their verification tool before filing anything.
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Fatima Al-Maktoum
•Good point about the secured party address. I always forget that has to match exactly too, not just the debtor information.
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Dylan Mitchell
•Address mismatches are one of the most common reasons UCC filings get rejected. Having an automated check for that would definitely be useful.
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Sofia Gutierrez
Keep detailed records of all your communications with the original lender - dates, who you spoke with, what they promised. If you end up having to file the termination yourself or get a lawyer involved, that documentation will be valuable for showing you made good faith efforts to get them to comply with their obligations.
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Dmitry Petrov
•This is important advice. I learned this the hard way when I couldn't prove what a lender had promised me over the phone.
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StarSurfer
•Always follow up phone calls with email confirmation of what was discussed. Creates a paper trail that's hard to dispute later.
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Chloe Martin
•I've been keeping notes but hadn't thought to follow up the calls with emails. I'll start doing that immediately.
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Natasha Orlova
Given the urgency of your $180k equipment loan being held up, I'd recommend a two-pronged approach. First, send that certified demand letter to the original lender immediately - include specific language about statutory obligations and potential damages from their non-compliance. Meanwhile, start preparing to file the UCC-3 termination yourself as backup. Make sure to use the exact debtor name from the original filing (without the LLC designation) and double-check every detail matches perfectly. The self-filed termination route requires more paperwork but it's legally valid and might be faster than waiting for an unresponsive lender. Document everything and consider having a lawyer review your demand letter to add more legal weight - the cost will be minimal compared to losing that equipment financing.
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