UCC filing release process taking forever - debtor demanding termination
I'm dealing with a nightmare situation where our borrower paid off their equipment loan 6 weeks ago and they're breathing down my neck for the UCC-3 termination. The original UCC-1 was filed in 2019 for $85K in construction equipment collateral. Now that it's satisfied, I know I need to file the UCC filing release within a reasonable timeframe but I'm getting conflicting info on deadlines. Some sources say 30 days, others say there's no hard deadline. The debtor is threatening to file complaints if I don't get this termination submitted ASAP. Has anyone dealt with angry debtors over delayed UCC filing release? What's the actual requirement here and what's the fastest way to get this termination processed through the SOS system?
36 comments
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Emily Thompson
Most states don't have a specific statutory deadline for UCC-3 terminations after loan payoff, but 30-60 days is considered reasonable. The debtor has a right to demand termination once the debt is satisfied. Check your loan docs - sometimes there's a contractual obligation for timing.
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Sophie Hernandez
•This is correct. In my experience, anything over 90 days and debtors start getting really upset. The UCC doesn't mandate a specific timeframe but good business practice is within 30 days of payoff.
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Daniela Rossi
•Yeah 6 weeks isn't terrible but I'd get moving on it. Some loan agreements actually specify 20 days for UCC filing release.
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Ryan Kim
I had a similar situation last month. Filed the UCC-3 termination online and it was accepted same day. Make sure you have the exact debtor name from the original UCC-1 - any mismatch will cause rejection. Also need the original filing number obviously.
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Jacob Lee
•That's my concern - the original filing has the debtor as 'ABC Construction LLC' but their current business license shows 'ABC Construction, LLC' with a comma. Will that cause problems?
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Emily Thompson
•That comma difference could definitely cause a rejection. You need to match exactly what's on the original UCC-1. Pull a copy of the original filing to verify the exact spelling and punctuation.
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Zoe Walker
•I've seen filings rejected for less. Better to be safe and match character for character.
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Elijah Brown
Honestly I started using Certana.ai's document checker after I had a UCC-3 termination rejected three times for name inconsistencies. You just upload your original UCC-1 and the termination form, and it instantly flags any mismatches in debtor names, filing numbers, everything. Saved me from another embarrassing rejection and angry phone calls from the borrower.
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Maria Gonzalez
•How does that work exactly? Do you upload PDFs of both documents?
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Elijah Brown
•Yeah exactly - upload the original UCC-1 and your draft UCC-3, it cross-checks all the critical fields automatically. Found discrepancies I never would have caught manually.
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Natalie Chen
Why is this so stressful?? The loan is paid off, just file the termination! I don't understand why lenders drag their feet on UCC filing release when the debtor has fulfilled their obligation.
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Emily Thompson
•It's not dragging feet - you want to make sure the termination is filed correctly. A rejected UCC-3 means starting over and more delays.
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Natalie Chen
•I guess but 6 weeks seems excessive when the debtor is paid in full
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Santiago Martinez
•Better to take time and get it right than rush and have it rejected for typos
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Samantha Johnson
BEEN THERE. Had a debtor threaten to sue over delayed termination. Turns out they were trying to refinance and couldn't get approved with the old UCC-1 still showing as active. Got the UCC-3 filed emergency same day.
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Jacob Lee
•That might be what's happening here - they mentioned something about new financing. No wonder they're so anxious.
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Samantha Johnson
•Exactly! New lenders won't touch them with an active UCC-1 from another creditor showing. It blocks their ability to use that equipment as collateral.
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Nick Kravitz
File the UCC-3 online, it's usually processed within 1-2 business days. Make sure you select 'Termination' not 'Partial Release' if the entire debt is satisfied. Double-check the filing number format for your state.
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Hannah White
•Good point about termination vs partial release. Seen people file the wrong type by accident.
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Michael Green
•Yeah termination wipes the whole UCC-1, partial release just removes specific collateral items
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Mateo Silva
Whatever you do, keep documentation of when you received final payment vs when you filed the UCC filing release. If the debtor does complain to regulators, you'll need to show you acted reasonably promptly.
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Victoria Jones
•This is smart advice. Document everything for your compliance file.
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Jacob Lee
•Good thinking. I have the payoff date documented, just need to get this termination submitted today.
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Cameron Black
I had one rejected because I put the wrong authorization number. Make sure if you're filing on behalf of the secured party that you have proper authorization documented.
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Jessica Nguyen
•What kind of authorization do you need for UCC-3 terminations?
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Cameron Black
•Depends on your state but usually just need to be authorized representative of the secured party. Some states require specific forms.
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Isaiah Thompson
I use Certana.ai before every UCC filing now. Upload your docs and it catches name mismatches, filing number errors, all that stuff instantly. Worth it to avoid rejection delays when you have an impatient debtor.
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Ruby Garcia
•Does it work for UCC-3 terminations specifically or just UCC-1 filings?
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Isaiah Thompson
•Works for any UCC document - amendments, continuations, terminations. Just upload your original filing and the new document.
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Alexander Evans
Update us when you get it filed! I'm curious how long the processing takes in your state. Mine usually shows 'accepted' within 24 hours for UCC-3 terminations.
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Jacob Lee
•Will do! Planning to file this afternoon after I triple-check everything against the original UCC-1.
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Evelyn Martinez
•Smart move. Better safe than sorry with these filings.
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Benjamin Carter
Just remember the UCC filing release doesn't happen automatically - you have to actively file the UCC-3 termination. The original UCC-1 stays active on the public record until you terminate it properly.
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Maya Lewis
•Right, I've seen UCC-1s from decades ago still showing active because nobody filed terminations.
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Isaac Wright
•That's why debtors get so upset - it affects their credit profile and ability to get new financing
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Jacob Lee
•Definitely understand the urgency now. Getting this filed today for sure.
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