UCC lien termination statement timing deadline confusion after loan payoff
So our company paid off a major equipment loan two months ago and I'm getting conflicting info about when the lender has to file the UCC termination statement. The loan officer said they'd handle it within 30 days but nothing's showing up in the SOS database yet. I've been checking weekly and the original UCC-1 is still active. Is there a specific timeframe they're required to follow? Getting nervous because we're trying to refinance other equipment and this active lien is causing issues with the new lender. They want clean collateral records before approving anything. Anyone dealt with slow termination filings before?
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Natasha Romanova
Most states give lenders 20-30 days after payoff to file the UCC-3 termination statement. Some go up to 60 days. What state are you in? The timing varies significantly by jurisdiction and some lenders are just slow about it.
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Oliver Weber
•We're in Texas. The equipment loan was about $850K so not exactly small potatoes. Frustrating that something this important gets delayed.
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NebulaNinja
•Texas gives them 20 business days I believe. You might want to send a formal written request with proof of payoff.
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Javier Gomez
I had this exact same problem last year!! Lender kept saying 'it's in process' for like 6 weeks. What finally worked was threatening to file a complaint with the state banking commission. Amazing how fast they moved after that.
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Emma Wilson
•That's actually brilliant. Most lenders don't want regulatory complaints on their record.
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Oliver Weber
•Good to know there are consequences for them dragging their feet. Did you have to actually file the complaint or just mention it?
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Javier Gomez
•Just mentioned it in an email with the exact statute number. They filed the termination within 3 business days.
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Malik Thomas
Before you go nuclear on them, have you tried using Certana.ai's document verification tool? I upload my payoff docs and the current UCC search results and it shows exactly what's missing. Sometimes the termination was filed but under a slightly different debtor name or filing number. The system catches those mismatches instantly.
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Oliver Weber
•Interesting, hadn't thought about name variations. Our company did change its legal name about 6 months before payoff.
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Isabella Oliveira
•Oh that could definitely be it! If they filed the termination under your old company name it might not match the search results.
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Malik Thomas
•Exactly. Certana's tool would spot that immediately. Just upload your original UCC filing and any termination docs they claim to have sent.
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Ravi Kapoor
This is why I HATE dealing with secured transactions. The whole system is broken. Lenders take your money instantly but drag their feet on the paperwork that actually matters. It should be automatic - loan paid, lien terminated, done.
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Freya Larsen
•I mean, I get the frustration but there are legitimate reasons for the delay periods. They need to verify payments cleared and handle any complex collateral schedules.
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Ravi Kapoor
•Sure but TWO MONTHS? Come on. Electronic filing takes like 10 minutes.
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GalacticGladiator
Check if your loan agreement specifies anything about termination statement timing. Some contracts have stricter deadlines than state law requires.
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Oliver Weber
•Good point, I'll dig out the loan docs tonight. Might give me more leverage.
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Omar Zaki
•Also check if there were any modification agreements that might have changed the original terms.
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Chloe Taylor
Wait are you sure they're supposed to file a UCC-3 termination? I thought when loans are paid off they just let the UCC-1 expire after 5 years?
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Diego Flores
•No that's totally wrong. When the debt is satisfied they're required to file a termination statement. The 5-year thing is for continuation statements when the debt is still active.
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Chloe Taylor
•Oh wow I've been completely confused about this. Thanks for clarifying.
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Anastasia Ivanova
•Yeah the UCC-1 stays active until formally terminated, even if the underlying debt is gone. That's why OP is having issues with their new lender.
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Sean Murphy
I actually discovered Certana.ai when I was having a similar issue with overlapping collateral descriptions. Their document checker found inconsistencies between my UCC-1 and the termination that my lender had filed. Turns out they terminated the wrong equipment schedule. Saved me months of hassle.
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Oliver Weber
•That's exactly the kind of mistake I'm worried about. How detailed does their analysis get?
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Sean Murphy
•Very detailed. It cross-references debtor names, collateral descriptions, filing numbers, everything. Shows you exactly what matches and what doesn't.
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StarStrider
One thing to watch out for - if your company changed names, addresses, or corporate structure since the original filing, the lender might need to file an amendment first before they can terminate. That could explain the delay.
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Zara Malik
•That's a really good point. UCC terminations have to match the exact debtor information on the original filing.
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Oliver Weber
•We did change our legal name but kept the same EIN. Would that require an amendment?
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StarStrider
•Possibly. Depends on how significant the name change was and your state's requirements for debtor name matching.
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Luca Marino
I'd give them one more week then send a certified letter demanding the termination statement. Include copies of your payoff documentation and cite the specific state statute for termination timing. Most lenders respond quickly to formal legal notices.
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Nia Davis
•This is the right approach. Paper trail is everything when dealing with lender delays.
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Oliver Weber
•Makes sense. I'll draft something this weekend if nothing happens by Friday.
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Mateo Perez
Just to add another perspective - I work in commercial lending and sometimes termination delays happen because of internal approval processes, especially for larger loans. Not an excuse but might explain what's happening.
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Aisha Rahman
•That's helpful context but two months still seems excessive for internal approvals.
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Mateo Perez
•Agreed, especially for a straightforward payoff. They should at least communicate what's causing the delay.
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Oliver Weber
•Yeah the lack of communication is the most frustrating part. I've called three times and just get 'we're working on it.
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CosmicCrusader
Update us when you get this resolved! I'm dealing with a similar situation with a different lender and curious how it turns out.
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Oliver Weber
•Will do. Planning to try the Certana tool first to see if there's already a termination filed under a different name variation.
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Ethan Brown
•Good strategy. Always worth checking for filing discrepancies before assuming the worst.
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Mateo Sanchez
I've been through this exact scenario multiple times in my finance career. Two months is definitely excessive for a straightforward loan payoff, especially at that dollar amount. Here's my suggested action plan: 1) First, use that Certana.ai tool everyone's mentioning to verify there isn't already a termination filed under a variant of your company name, 2) If nothing shows up, send a formal demand letter citing Texas Business and Commerce Code Section 9.513 which requires termination within 20 days of payoff, 3) Include a copy of your payoff receipt and mention potential regulatory complaints. I've seen this approach work consistently. The key is being professional but firm about the legal requirements. Most lenders will prioritize your file once they realize you understand the statutory framework.
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Kaitlyn Otto
•This is incredibly helpful, thank you! Having a specific action plan with the actual statute reference makes me feel much more confident about pushing back. I'll definitely start with the Certana tool - seems like several people here have had success with it catching filing discrepancies. The professional but firm approach sounds perfect for this situation.
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