UCC 1 termination process - timeline confusion after loan payoff

No confirmation number or anything like that. Just verbal assurance from the loan officer. Should I be asking for specific documentation?

Absolutely. Ask for the filing receipt or confirmation number. Every electronic UCC filing generates an immediate receipt with timestamp and filing number.

How did you find out about the rejected filings? Can borrowers see rejection notices?

I had to call the Secretary of State office directly. They couldn't give me details due to privacy but they confirmed no successful termination had been processed for my filing number.

Wait, so the SOS won't tell you why YOUR OWN termination got rejected? That seems backwards.

That's really helpful. How does that verification tool work exactly? Do you just upload PDFs?

Yes, super simple. Upload your UCC-1, then upload the UCC-3 termination. It cross-checks all the critical fields automatically - debtor names, filing numbers, collateral descriptions. Catches inconsistencies that cause rejections.

Interesting tool. Never heard of automated UCC document checking before but makes sense given how picky the filing systems are about exact name matches.

Start asking for updates NOW. Don't wait until after payoff. Get the process timeline in writing before you make final payment.

Good advice. Should I ask to see a draft of the termination statement before they file it?

Yes! Verify they have your exact legal entity name and the correct original filing number. Those are the two things that cause most termination rejections.

The processing delay isn't usually on the state side - it's typically lender internal processes. Most SOS offices process clean electronic filings within days.

Then why don't they give borrowers more visibility into the status? We're stuck in limbo with no information.

Because lenders don't want to deal with borrowers calling every day asking about filing status. But yeah, more transparency would help.

That's smart. I'll dig through the paperwork tonight. What kind of language should I be looking for?

Look for sections about 'release of security interest' or 'termination of UCC filings.' Often buried in the fine print but usually includes timeframes like '30 days after final payment.

How would I know the difference? Would it show differently in the state database?

Full termination should show the filing as 'TERMINATED' status. Partial release would still show 'ACTIVE' but with modified collateral description. Very different outcomes.

This is another thing Certana.ai would catch. If you upload what you think is a termination but it's actually an amendment, the system flags the discrepancy immediately.

Address changes usually don't invalidate terminations as long as the legal entity name and filing number are correct. But worth double-checking with a UCC attorney if you're concerned.

Thanks, that's reassuring. The filing number and company name are exact matches so hopefully we're fine.

Will definitely update the thread. Planning to call them tomorrow morning with specific questions based on all this advice.

Good luck! The squeaky wheel gets the grease with these situations.

That's an interesting idea. Would that require an attorney or can businesses file terminations directly?

Technically you can file your own UCC-3 termination but you need proper authorization from the secured party (lender). Most lenders won't grant that authority, preferring to maintain control.

Plus if you file incorrectly without proper authorization, you could face legal issues. Usually better to keep pushing the lender to do their job.