UCC-1 cancellation form filing - debtor requesting termination after loan payoff

Thanks for the clarification! So I should be looking for UCC-3 termination forms on our state's SOS website, not trying to find some special cancellation version of the UCC-1?

Exactly. UCC-3 is the amendment form used for terminations, continuations, and assignments. For termination you'll check the termination box and reference the original filing number.

Our satisfaction letter just says the loan is paid in full and releases all liens. Do you think that's sufficient authorization language?

Might not be enough. The authorization usually needs to explicitly state the debtor is authorized to file the termination statement. Check your state's UCC rules.

I had this exact problem last year. My satisfaction letter wasn't specific enough and the filing got rejected. Had to go back to the lender for a properly worded authorization.

We've been waiting 6 weeks already and they keep saying it's in process. We need this cleared for a new credit application next month.

Some lenders are just terrible about this. I've seen them take 6+ months if you don't stay on them constantly.

That sounds helpful - does it actually tell you if your documentation is sufficient for debtor-authorized termination?

It cross-checks your documents against UCC requirements and flags potential issues. Much better than guessing and getting rejected.

I know it's frustrating but the requirements exist to prevent fraudulent terminations. You don't want just anyone being able to cancel liens.

i get that but when you have a clear payoff letter it should be automatic

Good point. I have the original financing statement with the file number - should I double-check it against the SOS database before filing?

Absolutely. Sometimes there are data entry errors between what's on the documents and what's in the system.

It was all mobile equipment - tractors and implements. Nothing permanently attached to real estate so I think we're good on that front.

That should simplify things. Mobile ag equipment is straightforward UCC territory.

Still worth double-checking the collateral description on the original filing to make sure nothing was described as fixtures.

This is super helpful - did you file online or by mail? I'm worried about the authorization attachment process.

Filed online and scanned the authorization as a PDF attachment. Most states handle it electronically now.

Oh wow, I hadn't thought of that. How do you find out if the loan was transferred?

Check the UCC database for any UCC-3 assignment filings on your original file number. Also ask your current loan servicer directly.

This is another thing Certana.ai caught when I uploaded my docs - it flagged that there was an assignment I missed and I was getting authorization from the wrong party.

I'll look into our state requirements. We've definitely waited long enough at this point.

Most states have similar waiting periods to give the secured party a chance to file voluntarily first.

Seems like several people have had good luck with that tool. At this point I just want to get it right the first time.

Exactly my thinking. The document checker saved me weeks of back-and-forth with rejected filings.