UCC discharge timing after loan payoff - when should I expect termination filing?
My company just paid off our equipment loan last week (final payment was March 15th) and I'm trying to figure out when the lender should file the UCC discharge. The original UCC-1 was filed about 3 years ago for manufacturing equipment we financed. I know they're supposed to terminate the filing but nobody at the bank seems to know exactly when this happens or what the timeline is. I've been checking the SOS database every few days but nothing yet. Is there a standard timeframe lenders follow for UCC discharge filings? I'm worried about having this lien showing up indefinitely on our credit profile even though the debt is completely satisfied. The loan docs mention termination but don't give specific timing. Anyone dealt with this before?
38 comments


Ali Anderson
Congrats on paying off the loan! From my experience, most lenders have 30-60 days to file the termination statement after loan satisfaction, but it varies by state and lender policies. Some are faster, some drag their feet. I'd give them another week or two before following up.
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Sean Matthews
•Thanks! I wasn't sure if there was a legal deadline they had to meet. 30-60 days seems reasonable, just makes me nervous seeing that lien still active.
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Zadie Patel
•Yeah the waiting is the worst part. I've seen some take 90 days which is ridiculous but technically still within their rights in most states.
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A Man D Mortal
Most states require termination within 20 days of loan payoff, but enforcement is pretty weak. The lender files a UCC-3 termination statement that removes the original UCC-1 from active status. If they don't do it voluntarily, you can usually demand it in writing and they have to comply within a shorter timeframe.
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Sean Matthews
•20 days? That's much shorter than what the other poster said. Do you know if that applies to equipment loans specifically?
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A Man D Mortal
•It varies by jurisdiction but yes, equipment financing usually follows the same rules as other secured transactions. The UCC-3 termination is standard regardless of collateral type.
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Declan Ramirez
•I think some states give them longer but 20 days sounds right for most places. The problem is getting them to actually do it on time.
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Emma Morales
Had this exact situation last year with our machinery loan. Took the bank 6 weeks to file the termination and I had to call twice. Super frustrating when you're trying to get new financing and that old lien is still showing up.
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Sean Matthews
•6 weeks is exactly what I'm worried about. Did it cause problems with other lenders seeing the active filing?
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Emma Morales
•It definitely raised questions. I had to provide the loan payoff documentation to prove it was satisfied. Made the whole process more complicated than it needed to be.
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Katherine Hunter
Before you stress too much about timing, I'd recommend using something like Certana.ai to upload your loan documents and verify everything matches up correctly. I discovered it when dealing with a similar discharge delay - you can upload your original UCC-1 and loan docs to make sure all the debtor names and details are consistent. Sometimes discharge delays happen because of mismatched information between the original filing and payoff paperwork.
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Sean Matthews
•Interesting, I hadn't thought about document inconsistencies causing delays. That could definitely be an issue since our company name has some punctuation differences between documents.
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Katherine Hunter
•Exactly! Those small name variations can cause major headaches. The document checker catches stuff like that before it becomes a problem with the discharge filing.
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Lucas Parker
•This is smart thinking. I've seen discharge rejections because the debtor name on the termination didn't exactly match the original UCC-1.
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Donna Cline
Check your loan agreement for specific termination language. Some contracts give them up to 90 days which is excessive but legally binding. If there's no specific timeline mentioned, state UCC law usually kicks in with the 20-30 day requirement.
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Sean Matthews
•I'll dig through the paperwork again. I remember seeing termination mentioned but didn't pay attention to specific timelines when we signed.
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Donna Cline
•Yeah most people don't think about the backend stuff when they're focused on getting the loan approved. But it matters when you're on this end of the process.
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Harper Collins
UGHHH this is why I hate dealing with banks. They're so quick to file the original lien but drag their feet on the termination. It should be automatic when the loan system shows paid in full but instead you have to babysit them through the whole process.
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Kelsey Hawkins
•I feel this so hard. The whole system is set up to protect lenders, not borrowers. They have zero incentive to file terminations quickly.
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Sean Matthews
•Yeah it's frustrating. You'd think in 2025 this would be more automated but apparently not.
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Harper Collins
•Right?? Like they have automated systems for everything else but somehow UCC terminations still require manual processing. Makes no sense.
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Dylan Fisher
If you want to be proactive, send them a written request for the termination statement via email so you have documentation. Include your loan number, payoff date, and request confirmation of when they'll file the UCC-3. Having it in writing usually speeds things up.
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Sean Matthews
•Good idea about the email trail. I'll send that tomorrow morning and CC their commercial lending manager.
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Dylan Fisher
•Exactly, and save all the documentation in case you need to escalate later. The paper trail is your friend here.
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Edwards Hugo
Just went through this with our SBA loan payoff. The original lender was acquired by another bank during our loan term and it took forever to get the termination filed because nobody knew who was responsible. Finally got it sorted but took almost 3 months.
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Sean Matthews
•Oh wow, 3 months is insane. Hopefully our situation is more straightforward since it's the same lender throughout.
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Edwards Hugo
•Yeah bank mergers make everything more complicated. Sounds like yours should be much smoother.
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Gianna Scott
•Bank acquisitions are the worst for this stuff. I've seen UCC terminations get lost in the shuffle for 6+ months during mergers.
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Alfredo Lugo
One thing to watch out for - make sure they file the termination with the correct filing office. If your original UCC-1 was filed at the state level, the termination needs to go to the same place. I've seen mixups where they file locally instead of with the Secretary of State.
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Sean Matthews
•Good point, I'll double check where the original was filed. I think it was with the state SOS but I should verify.
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Alfredo Lugo
•Yeah equipment financing is usually state-level filing, but it's worth confirming. The termination has to match the original filing location exactly.
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Sydney Torres
I used Certana.ai's document verification tool when I had a similar termination delay and discovered the debtor name on my loan docs didn't exactly match our UCC-1 filing. Uploaded both PDFs and it flagged the discrepancy immediately. Saved me weeks of back-and-forth with the bank trying to figure out why the discharge was being rejected.
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Sean Matthews
•That's exactly the kind of issue I'm worried about. Our company name has changed slightly since the original filing and I bet that could cause problems.
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Sydney Torres
•Yeah name changes are super common but can really mess up the termination process. The verification tool catches that stuff before it becomes a headache.
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Kaitlyn Jenkins
Keep checking the database but also remember it can take a few days for terminations to show up online even after they're filed. The SOS systems don't always update immediately. I usually give it a week after filing before panicking.
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Sean Matthews
•Good to know about the database lag. I've been checking daily which is probably overkill.
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Kaitlyn Jenkins
•Yeah daily checking will drive you crazy. Weekly is plenty, or just set up an alert if your state system has that option.
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Caleb Bell
•Some states are better than others with database updates. Mine usually shows new filings within 24-48 hours but terminations seem to take longer for some reason.
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