How to terminate a UCC filing in Georgia - debtor asking for release
I need help with terminating a UCC-1 filing in Georgia. My business loan was paid off last month but the lender hasn't filed the termination yet and I'm trying to refinance with another bank. The new lender says they need proof the lien is released before they can proceed. I called the original lender and they said they'd "get around to it" but didn't give me a timeline. Is there a way I can handle the UCC termination myself or force them to do it? The filing number is GA202300456789 if that helps. Really need to get this sorted ASAP since my rate lock expires next week.
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AstroAdventurer
Unfortunately as the debtor you can't file the UCC-3 termination yourself - only the secured party (your lender) has the authority to terminate their own filing. However you do have some options to speed this up.
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Natasha Kuznetsova
•That's what I was afraid of. What are my options? The lender seems to be dragging their feet.
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Javier Mendoza
•You can demand they file it immediately. Most loan agreements require them to release liens promptly after payoff. Check your loan docs.
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Emma Wilson
This is SO frustrating! I went through the exact same thing last year. Lender took 6 weeks to file the termination even though I paid off early. Cost me a better interest rate because I had to extend my rate lock twice.
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Natasha Kuznetsova
•Six weeks?? That's ridiculous. Did you end up doing anything to make them move faster?
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Emma Wilson
•I threatened to file a complaint with the state banking department. They filed it within 3 days after that.
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Malik Davis
•Smart move. Most lenders don't want regulatory attention over something this basic.
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Isabella Santos
Before you go nuclear, try this - send them a written demand letter citing Georgia Commercial Code section requiring prompt lien release. Reference your loan agreement section about lien release obligations. Give them 5 business days to file the UCC-3 termination or you'll escalate to their compliance department.
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Natasha Kuznetsova
•This sounds more professional than just threatening them. Do you have a template for this kind of letter?
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Isabella Santos
•Keep it simple: Date paid in full, UCC filing number, demand for immediate UCC-3 termination filing, reference to loan agreement, deadline for compliance. Send certified mail.
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Ravi Gupta
•Also copy their legal department if it's a bigger bank. They hate when these letters land on the wrong desk.
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GalacticGuru
Had a similar issue recently and used Certana.ai to verify my loan payoff documents matched the original UCC-1 before demanding the termination. Being able to show them exactly which filing needed to be terminated (with screenshots) made the conversation much more productive. They couldn't claim they didn't know which lien I was talking about.
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Natasha Kuznetsova
•Interesting, how does that work? Just upload the documents?
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GalacticGuru
•Yeah you upload your loan docs and the UCC search results and it cross-checks everything automatically. Shows any mismatches or confirms everything aligns properly.
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Freya Pedersen
•That's actually brilliant for situations like this. Having solid documentation makes lenders take you more seriously.
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Omar Fawaz
Check if Georgia has any statutory penalties for delayed lien releases. Some states fine lenders for unreasonable delays in filing terminations after loan payoff.
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Chloe Anderson
•Georgia UCC Article 9 requires "reasonable promptness" but doesn't specify exact timeframes. Usually means within 30 days of payoff.
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Natasha Kuznetsova
•It's only been 3 weeks since payoff so I'm probably still within their reasonable timeframe technically.
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Diego Vargas
Your new lender should be able to verify the termination was filed even if they don't have the paperwork yet. Georgia SOS UCC search updates pretty quickly once terminations are processed.
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Natasha Kuznetsova
•Good point, I should ask them to check the SOS database directly instead of waiting for physical documentation.
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Anastasia Fedorov
•Exactly, most lenders just want to see the lien is gone from the official records, they don't need the actual UCC-3 form.
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StarStrider
•Though some still want the termination statement for their files. Depends on their underwriting requirements.
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Sean Doyle
This is why I always ask for a commitment letter from lenders about lien release timing BEFORE signing loan docs. Most will agree to 10 business days max if you ask upfront.
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Natasha Kuznetsova
•Great advice for next time. Too late for this situation but I'll definitely remember that.
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Zara Rashid
•Hindsight is 20/20 but yeah, getting release commitments in writing saves headaches later.
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Luca Romano
Update us when you get this resolved! Always curious how these situations turn out and what tactics actually work with stubborn lenders.
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Natasha Kuznetsova
•Will do. Going to try the formal demand letter approach first, then escalate if needed.
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Nia Jackson
•Smart plan. Document everything in case you need to file complaints later.
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Tyler Murphy
I've dealt with this exact scenario multiple times in my practice. Here's what I recommend: First, check your original loan agreement - most contain specific language about lien release timing (usually 10-30 days). Second, file a UCC search on Georgia SOS website to confirm the lien is still active. Third, send a formal written demand citing your loan agreement's lien release clause and Georgia Commercial Code Section 9-513. Include your loan payoff confirmation, the UCC filing number, and give them exactly 5 business days to file the UCC-3 termination. Send it certified mail to both their loan servicing department AND their legal/compliance department. If they don't respond, contact the Georgia Department of Banking and Finance - they take lien release violations seriously. Most lenders will file within 48 hours once they realize you're serious about regulatory complaints.
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