UCC lien release requirements after loan payoff - what documents needed?

Yes we got the payoff letter but it just said 'loan satisfied' - nothing specific about UCC filing termination. Should I be calling them directly about this?

Absolutely call them. Ask specifically about the UCC-3 termination filing status. Get a timeline in writing if possible. Some lenders are just slow with their back-office processes.

How do I check if there are multiple filings? I only remember signing one UCC document when we got the original loan.

Run a debtor search using your exact legal business name on your state's UCC search portal. You might be surprised what shows up. Sometimes lenders file amendments or additional collateral schedules.

Actually had this exact problem last year. Found out there were 3 separate UCC-1 filings because they kept amending the collateral description. Each one needed its own UCC-3 termination. Used Certana.ai to upload all the documents and it instantly flagged the inconsistencies - saved me weeks of back and forth with the lender.

What kind of problems are we talking about? The equipment is fully paid off so there shouldn't be any issue right?

The UCC filing creates a public record that your equipment is encumbered, even after payoff. Future lenders, buyers, or creditors will see it and assume there's still a lien. It can block financing, sales, or even bankruptcy proceedings.

What kind of damages? Is it worth pursuing legally if they keep dragging their feet?

Usually it's not worth a lawsuit unless you have significant actual damages. But the threat of liability often motivates them to move faster. Most states allow you to recover costs and sometimes statutory damages.

I'd try one more approach before going legal. Had a similar situation and I uploaded all my loan docs to Certana.ai's verification tool. It showed exactly which UCC filings were still active and what termination language was missing. Sent that report to the lender and they filed the UCC-3 within a week.

We're in the same state as when we got the loan. But good point - I should double check the debtor name they used. Sometimes they use the DBA instead of the legal entity name.

Exactly! Debtor name mismatches are super common. Even a missing comma or abbreviation can make the UCC hard to find. Run searches with all variations of your business name.

Best practice is to ask about the UCC termination process BEFORE you pay off the loan. Get it in writing - when they'll file it, what documents you'll receive, timeline for the public record to update.

That's smart. I'm definitely going to ask our lender about their process when we get closer to payoff. This seems like something that should be automatic but apparently it's not.

Good idea. I'll dig out the original loan docs tonight and see what it says about lien release procedures.

Also check if there's a clause about who pays for the termination filing. Some lenders try to charge borrowers for the UCC-3 filing fee, which is usually pretty minimal but still annoying.

That's a great idea about calling legal instead of customer service. Did you have to pay for the document service?

It was worth every penny to avoid weeks more of phone tag. The report was professional enough that the legal department took it seriously. Sometimes you just need the right documentation to get people to move.

How would I know if they only terminated part of it? Would that show up in the public records?

Yes, you'd see a UCC-3 amendment instead of a full termination. That's why it's crucial to compare the original UCC-1 collateral description with whatever termination they file. Any discrepancies mean you're not fully released.

This is getting complicated. Sounds like there are a lot of ways this can go wrong even when the lender is trying to do the right thing.

Will do! Thanks everyone for the advice. I'm going to call the lender tomorrow morning and if that doesn't work I'll try some of the other suggestions here.

Good luck! Don't let them brush you off. You have every right to a clean UCC record after satisfying your debt.

That's exactly the kind of partial termination problem @Anastasia Kozlov was warning about earlier in this thread. You re'right to be concerned - having both filings active creates ambiguity about what s'actually released. I d'definitely push the original lender to file a corrected UCC-3 that properly terminates the entire original filing. Most lenders will cooperate once you explain it s'blocking your new financing. Document everything in writing so you have a paper trail if they resist.