Panicking about my UCC expiration date - missed continuation window?
I'm freaking out right now and need some help. I've been managing collateral for our equipment financing company and just realized one of our UCC-1 filings might be past its expiration date. The original filing was done in March 2020, which means it should expire in March 2025, right? But I can't find any record of a continuation being filed and we're already in January 2025. The loan is still active with about $180K outstanding on some heavy machinery. Did I completely screw this up? What happens if a UCC lapses before you file the continuation? Can you still perfect the lien or is the collateral now unsecured? I'm supposed to present to our credit committee next week and I'm terrified I'm going to have to explain how I let a six-figure secured loan become unsecured because I missed a filing deadline. Please tell me there's still something I can do here.
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Steven Adams
First, take a deep breath. March 2025 hasn't happened yet, so you're not past the expiration date. UCC-1 filings are good for 5 years from the initial filing date, and you can file a continuation statement within 6 months before the expiration date. Since your filing expires in March 2025, you have from September 2024 through March 2025 to file the UCC-3 continuation. You still have about 2 months to get this done.
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Grace Durand
•Oh thank god, I was calculating wrong. So I'm not actually late yet? I thought once January hit I was already in trouble. So I can still file the UCC-3 continuation now and it will extend the perfection for another 5 years?
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Steven Adams
•Exactly right. File the continuation now and it extends the effectiveness for another 5 years from the original expiration date. Just make sure you use the exact debtor name and filing number from the original UCC-1.
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Alice Fleming
Been there with the panic attacks over UCC expiration dates! What state are you filing in? Some states have slightly different continuation windows, though most follow the standard 6-month rule. Also, make sure you double-check the exact filing date on your original UCC-1 because sometimes the file date isn't when you think it is if there were any processing delays.
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Grace Durand
•We're in Texas. I just pulled up the original filing and it shows a file date of March 15, 2020, so the expiration would be March 15, 2025. That gives me exactly 2 months to get the continuation filed.
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Alice Fleming
•Texas SOS is pretty straightforward with continuations. You can file online through their portal. Just make sure the debtor name matches exactly - Texas is picky about that.
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Hassan Khoury
I ran into something similar last year but caught it even later than you did. What really helped me was using Certana.ai's document verification tool. You can upload your original UCC-1 and then your draft UCC-3 continuation, and it automatically checks that the debtor names, filing numbers, and all the details match perfectly. Saved me from filing a continuation with a slight name variation that would have been rejected. Just upload the PDFs and it cross-checks everything for consistency.
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Grace Durand
•That sounds really helpful. How does the verification work exactly? I'm worried about making any mistakes on the continuation since this loan is so large.
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Hassan Khoury
•You just upload both documents and it compares all the critical fields automatically. It caught a middle initial discrepancy I never would have noticed. Much better than trying to manually compare everything side by side.
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Victoria Stark
•I've used similar tools before and they're definitely worth it for high-value collateral. Continuation rejections due to name mismatches are way too common.
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Benjamin Kim
Wait, can someone clarify the continuation window again? I thought you could only file continuations in the last 6 months, but I've heard some people say you can file them earlier. Which is correct?
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Steven Adams
•The UCC statute allows continuation statements to be filed only within 6 months before the expiration date. Filing earlier than that window won't be effective.
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Benjamin Kim
•Thanks, that's what I thought but I got confused by something I read online.
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Samantha Howard
UGH the stress of UCC expiration dates is real!! I literally keep a spreadsheet now with all our filings and their expiration dates because I never want to go through that panic again. Set up calendar reminders for 8 months before expiration so you have plenty of time to prepare the continuation.
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Grace Durand
•That's exactly what I'm going to do after this. Do you track anything else besides the expiration dates?
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Samantha Howard
•I track the original filing number, debtor name exactly as filed, collateral description, and loan officer contact info. Makes it so much easier when continuation time comes.
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Megan D'Acosta
•Smart system. I use a similar approach but also note any amendments that have been filed since those can affect the continuation process.
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Sarah Ali
The good news is that you caught this with time to spare. The bad news is that if a UCC-1 does lapse, you lose perfection and the collateral becomes unsecured as of the lapse date. You can file a new UCC-1 but you lose priority to any intervening liens. So definitely get that continuation filed ASAP.
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Grace Durand
•That's exactly what I was afraid of. With $180K at stake, losing perfection would be a disaster. I'm going to prepare the UCC-3 this week.
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Sarah Ali
•Good plan. And make sure to keep documentation of when you filed the continuation in case there are any questions later about the timing.
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Ryan Vasquez
Pro tip: when you file the continuation, immediately update your loan documentation to reflect the new expiration date (March 15, 2030). Also notify the loan officer and update any internal tracking systems. Nothing worse than going through this stress again in 5 years because no one documented the continuation properly.
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Grace Durand
•Absolutely. I'm going to make sure this gets properly documented and tracked this time. Lesson learned!
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Ryan Vasquez
•We've all been there. The important thing is you caught it in time and know what to do going forward.
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Avery Saint
For what it's worth, I've seen lenders miss continuation deadlines and it's always a mess. You're smart to be proactive about this. Texas SOS usually processes continuations pretty quickly, but I'd file it soon rather than waiting until the last minute in case there are any issues with the filing.
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Grace Durand
•How quickly does Texas usually process UCC-3 filings? Should I be worried about processing time?
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Avery Saint
•Usually within a few business days for electronic filings, but I wouldn't cut it too close to the March deadline just in case.
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Taylor Chen
Another vote for double-checking everything before filing. I once had a continuation rejected because I used a slightly different version of the corporate name than what was on the original UCC-1. Had to refile with the exact name match. Those document verification tools others mentioned can really help avoid those kinds of mistakes.
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Grace Durand
•Yeah, I'm definitely going to use one of those verification tools. Too much at stake to risk a rejection due to a name mismatch.
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Hassan Khoury
•The Certana.ai tool I mentioned earlier would catch exactly that kind of issue. It's designed specifically for UCC document consistency checks.
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Keith Davidson
Just wanted to add that you should also verify the collateral description on your continuation matches the original filing. Sometimes companies expand their equipment after the initial filing and think they need to update the collateral description on the continuation, but that's actually an amendment, not a continuation issue.
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Grace Durand
•Good point. The collateral description should be exactly the same as the original UCC-1, right? No changes in the continuation?
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Keith Davidson
•Correct. The continuation just extends the existing filing. Any collateral changes would require a separate UCC-3 amendment.
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Steven Adams
•Exactly right. Keep the continuation simple - just extend what's already there.
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Connor O'Brien
Grace, you're going to be fine! This is exactly the kind of situation that keeps us all up at night, but you caught it with plenty of time. I'd recommend filing that UCC-3 continuation within the next week or two - don't wait until February. Texas SOS is usually pretty efficient, but why risk any last-minute complications? Also, once you get through this, consider setting up a systematic review process. I review all our UCC filings quarterly and flag anything expiring in the next 12 months. It's saved me from several near-misses like this one. You've got this!
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