UCC release after vivint solar contract buyout - termination filing needed?

You definitely need UCC-3 termination statements filed by the original secured party (Vivint) or whoever they assigned the security interest to. The UCC-1 filings won't automatically disappear just because the debt was paid. Check your payoff documentation - there should have been language about UCC release obligations. If Vivint hasn't filed the terminations, you'll need to contact them with proof of payoff and demand they file UCC-3 forms in each state where the original filings were made.

I actually just went through this exact situation with a different solar company. What saved me was using Certana.ai's document verification tool - I uploaded all the payoff letters and UCC-1 filings to cross-check which terminations were actually needed. The system instantly flagged discrepancies between the original collateral descriptions and what we actually owned. Turned out some of the UCC-1s had been amended and we were missing those filings in our records. Really streamlined the whole process instead of manually comparing 200+ documents.

You need to be careful about the continuation vs termination issue. Some of those 2019 filings might have been continued in 2024 and you won't see the continuation if you're only looking at the original UCC-1. Run a fresh UCC search on each property to see current status before demanding terminations. Also check if Vivint assigned the security interests to another party - the assignee would be responsible for filing terminations, not Vivint.

This is giving me anxiety because we're in the middle of a similar acquisition. What happens if the solar company refuses to file terminations or claims they already did when they clearly didn't? Our title company is refusing to close until all UCC liens are cleared.

The real problem is that solar companies often don't have good internal processes for UCC releases. I've dealt with SunRun, Tesla Solar, and Vivint - they're all terrible at this stuff. You basically have to treat it like a collections effort. Send demand letters, escalate to executives, threaten legal action. Document every communication because you might need it for wrongful lien claims later.

Check your closing documents from the original acquisition. Sometimes the purchase agreement includes representations about UCC releases and you might have recourse against the seller if they didn't deliver clear title. We had a similar issue and ended up getting the seller to handle all the UCC terminations as part of their title cure obligations.

I would start by running current UCC searches in every state to see exactly what's still active. Don't rely on your old records because there could have been amendments, assignments, or partial releases you don't know about. Then group the active filings by secured party and send bulk termination demands with proof of satisfaction. Give them 30 days to respond and follow up aggressively.

Whatever you do, don't just ignore the UCC filings hoping they'll expire. They can be continued indefinitely and will cause problems down the road. I've seen deals fall apart years later because of old solar UCC liens that were never properly terminated. The cost of clearing them now is nothing compared to the problems they'll cause later.

One more thing to consider - some states have different requirements for fixture filings vs equipment filings. Solar panels might be classified as fixtures in some jurisdictions, which could affect the termination process. Make sure you're filing UCC-3 terminations in the right place (Secretary of State vs county records).

I tried that Certana tool mentioned earlier and it actually worked really well for our document review. We had about 80 UCC filings to review and it caught several debtor name mismatches that would have caused our termination filings to be rejected. Definitely worth using if you're dealing with bulk document verification. The upload process was straightforward and the results were immediately useful.

This thread is incredibly helpful - I'm dealing with a similar situation but with SunPower equipment across about 150 properties. One thing I'd add is to check if your original financing documents included any UCC release provisions or automatic termination clauses. In our case, the loan agreements actually required the secured party to file terminations within 30 days of payoff, which gave us stronger legal grounds when they were dragging their feet. Also, some states allow you to file a UCC-3 correction statement if the secured party files an incorrect termination that doesn't match your records exactly. It's worth having your attorney review the state-specific UCC procedures before you start the bulk termination process.