Need help with security agreement cancellation letter after UCC termination filing

Exactly this. We always send a brief letter confirming the security agreement is terminated and the collateral is released. Takes 5 minutes and keeps everyone happy.

Do you have a template for that kind of letter? I've been winging it but would love to see a professional format.

This is solid advice. I'd also mention that they can verify the termination through the Secretary of State's UCC search portal if they want independent confirmation.

Good point about the SOS verification. That gives them a way to double-check everything independently.

That's actually really smart. I've had situations where the collateral description in my termination letter didn't exactly match what was in the original security agreement and it caused questions.

Never heard of that service but sounds useful for this kind of document consistency checking. How does it work exactly?

You just upload the PDFs and it cross-checks things like debtor names, collateral descriptions, and document references. Really helpful for catching those small inconsistencies that can cause big headaches.

So true! Half my borrowers have never heard of UCC filings before we explain the process. A simple letter makes it feel more like traditional business correspondence they're used to.

Plus their lawyers or accountants might specifically request it. Better to just provide it upfront than deal with follow-up requests.

Great point about record keeping. I always PDF the letter and save it in the same folder as the UCC-3 filing confirmation.

Yes! And date stamp everything. You never know when you might need to prove exactly when you released the security interest.

Good question - I need to pull the original loan docs and check. They're asking for it but I should verify if it's actually required by our agreement terms.

Most standard loan agreements have language about providing reasonable evidence of lien release upon request. A letter would definitely qualify as reasonable.

That's really thoughtful. Equipment buyers definitely want to see clean title documentation.

Exactly. And if they ever need to prove the equipment is unencumbered for insurance or financing purposes, having that letter makes the process much smoother.

Good call. I've seen letters that got way too detailed about the borrower's payment history or other loan terms. Just stick to the security interest release.

Right, you're not warranting anything about the collateral condition or confirming they own it free and clear of other liens. Just that YOUR security interest is gone.

Templates are definitely the way to go. Just make sure you update the borrower name, collateral description, and dates each time. Easy to miss those details when you're rushing.

I learned that lesson the hard way when I sent a letter with the wrong borrower name. Had to send a corrected version and looked pretty unprofessional.

Agree completely. These borrowers might come back for future financing or refer other customers. Worth maintaining goodwill.

Plus it shows you're thorough and professional in handling the loan closeout process. Attention to those details matters.