UCC 3 termination statement filing - need help with timing requirements

This is correct - the 20-day clock starts ticking when the debtor makes written demand for termination, not when the loan was paid off.

But don't most lenders just file the termination immediately after payoff to avoid any issues? Seems like waiting for demand is asking for trouble.

You're right that many lenders file immediately as best practice, but legally the 20-day period starts with written demand. Filing right away definitely avoids any potential liability issues.

This happened to me! Had a termination rejected because the original UCC-1 had 'John Smith' but I put 'John A. Smith' on the termination. Such a headache.

That's why I always pull the original filing first and copy the debtor name character for character. Also helps catch any errors in the original filing.

How does that work exactly? Do you just upload the documents and it tells you if there are problems?

Yeah, pretty much. You upload your UCC-1 and UCC-3 PDFs and it cross-checks the debtor names, filing numbers, and flags any inconsistencies that might cause rejection. Takes like 30 seconds instead of manually comparing everything.

That sounds useful for avoiding the name mismatch issues that seem to come up so often with terminations.

For partial terminations, you need to clearly describe what collateral you're releasing. The remaining collateral stays covered by the original UCC-1. Be very specific in your description.

I always describe both what's being released AND what remains, just to be crystal clear. Leaves no room for interpretation.

Good point. The filing state controls the termination requirements, not the debtor's location or lender's location.

Most states follow the same basic rules under Article 9, but there can be subtle differences in forms or procedures.

Exactly. The substantive law is mostly uniform, but procedural requirements can vary state to state.

Absolutely. New lenders want to see terminated liens before they'll fund. Delays here can kill the borrower's refinance.

Plus if you delay and the debtor has to explain to their new lender why there's still an active UCC-1 on file, it just creates unnecessary complications.

Good reminder. The filing is just part of the process - you need to update all your internal records too.

And keep a copy of the termination statement and any confirmation from the filing office for your loan file.

Does it work for other UCC forms too, or just terminations?

It works for UCC-1s, UCC-3s, amendments, continuations - basically any UCC document. Really helpful for making sure everything is consistent across related filings.

Agreed. Most termination issues come from overthinking it or making simple transcription errors.

Keep it simple and double-check your work. That's really all there is to it.

Great outcome! Quick turnaround on terminations always makes for happy borrowers.

Good to hear the verification tool worked well for you. Those little details can make such a big difference.

Perfect example of why it's worth investing in tools that catch errors before they become problems.