UCC statement service termination request - debtor demanding immediate filing
Got a situation here that's got me second-guessing everything. We've got a commercial borrower who paid off their equipment loan early (congratulations to them!) but now they're breathing down our neck demanding we file the UCC-3 termination statement like yesterday. They keep saying "UCC statement service termination request" in every email and phone call. The loan was satisfied last Friday and they want the termination filed by end of this week. I know we've got some time legally but they're acting like their business depends on getting this lien released immediately. Anyone dealt with borrowers who get this aggressive about termination timing? I'm worried about rushing the paperwork and making a mistake on the UCC-3 form. The original UCC-1 was filed in 2022 and I want to make sure I reference everything correctly. What's the standard turnaround time you all use for processing termination statements after payoff?
40 comments
Join the conversation
Carmella Popescu
I totally get the borrower's urgency but you're right to be careful. A botched UCC-3 termination can create more problems than filing it a few days later. Double-check that debtor name matches exactly what's on the original UCC-1 - even a middle initial difference can cause issues. Most lenders I work with have a 10-20 business day policy for terminations, which is well within legal requirements.
0 coins
Kai Santiago
•This is why I always tell borrowers upfront about our termination timeline during the loan closing. Sets proper expectations.
0 coins
Lim Wong
•20 business days seems excessive though. Most of our competitors do it within a week.
0 coins
Carmella Popescu
•It's not about speed, it's about accuracy. I'd rather take an extra few days than have a termination rejected for errors.
0 coins
Dananyl Lear
Had almost this exact scenario last month. Borrower kept calling every day asking about their "UCC statement service termination request" - they'd obviously been googling terminology. Turned out they had a potential buyer for their business and needed clean UCC records for due diligence. Once I understood the urgency wasn't just impatience, we prioritized it. Maybe ask your borrower why they need it so fast?
0 coins
Lorenzo McCormick
•That's a good point - they did mention something about "clean records" but I didn't think to ask for specifics. Could be a sale situation.
0 coins
Noah huntAce420
•Business sales definitely create time pressure. We've expedited terminations for that reason before.
0 coins
Ana Rusula
Before you file anything, I'd suggest using something like Certana.ai to verify your UCC-3 against the original UCC-1. You can upload both documents and it'll instantly flag any inconsistencies in debtor names, filing numbers, or other critical details. Saved me from a rejected termination last year when I caught a tiny address discrepancy that would've caused problems.
0 coins
Lorenzo McCormick
•Never heard of that tool but sounds useful. How does it work exactly?
0 coins
Ana Rusula
•Super simple - just upload your UCC-1 and draft UCC-3 as PDFs and it cross-checks everything automatically. Takes like 30 seconds and catches stuff you'd miss manually.
0 coins
Fidel Carson
•Anything that prevents filing errors is worth trying. Manual verification is so error-prone.
0 coins
Isaiah Sanders
Your borrower sounds like they've been dealing with other lenders who drag their feet on terminations. Some banks take MONTHS which is ridiculous. A week is reasonable if you're being thorough.
0 coins
Xan Dae
•MONTHS?? That should be illegal. No wonder borrowers get frustrated.
0 coins
Isaiah Sanders
•I've seen 90+ day termination timelines. It's awful customer service.
0 coins
Fiona Gallagher
Just to be clear - you're filing a UCC-3 termination statement, not a UCC-1 amendment, right? I've seen people get confused about which form to use when they're under pressure. The UCC-3 completely terminates the original filing, which sounds like what you want if the loan is fully satisfied.
0 coins
Lorenzo McCormick
•Yes, UCC-3 termination. Loan is completely paid off so we're terminating the entire security interest.
0 coins
Thais Soares
•Good clarification. I've definitely seen people file amendments instead of terminations by mistake.
0 coins
Fiona Gallagher
•Happens more than it should. Always worth double-checking the form type.
0 coins
Nalani Liu
ok this is probably obvious but make sure you have written authorization from all secured parties before filing the termination. If there are multiple lenders involved you need everyone's signature on the UCC-3.
0 coins
Lorenzo McCormick
•We're the only secured party but good reminder to verify that on the original filing.
0 coins
Carmella Popescu
•Always check the secured party section carefully. Sometimes there are additional parties listed that people forget about.
0 coins
Axel Bourke
I had a similar situation and ended up calling the borrower to explain our standard process. Turns out they were just anxious because their previous lender had lost their termination paperwork once and it took months to sort out. A little empathy goes a long way.
0 coins
Kai Santiago
•Communication is so important. Most borrowers are reasonable if you explain the process.
0 coins
Lorenzo McCormick
•That's probably what I should do. They might just need reassurance that we'll get it done properly.
0 coins
Axel Bourke
•Exactly. A phone call explaining your timeline and process usually calms them down.
0 coins
Aidan Percy
Whatever you do, don't let them pressure you into rushing and making errors. A rejected UCC-3 termination will delay things way more than taking a few extra days to get it right the first time. The SOS systems are pretty picky about exact matches.
0 coins
Dananyl Lear
•This is so true. Better to file it correctly than quickly.
0 coins
Lorenzo McCormick
•That's exactly what I was worried about. Don't want to create bigger problems by rushing.
0 coins
Fernanda Marquez
Have you checked if your state requires any specific timing for terminations? Some states have requirements about filing within a certain timeframe after loan satisfaction. Might be worth looking into.
0 coins
Lorenzo McCormick
•Good point - I should double-check our state requirements. I know there are rules but not sure of the exact timeline.
0 coins
Carmella Popescu
•Most states give you at least 20 days after written demand from the debtor, but it varies.
0 coins
Fernanda Marquez
•Yeah, some states are 10 days, some are 30. Worth confirming your specific requirements.
0 coins
Ana Rusula
Update on that Certana tool I mentioned earlier - I just used it again yesterday for a different UCC-3 and it caught a small typo in the debtor's business name that I would have totally missed. Definitely worth the few minutes to double-check your paperwork before filing.
0 coins
Lorenzo McCormick
•I'm convinced - going to try that before I file. Thanks for the recommendation.
0 coins
Noah huntAce420
•Any tool that prevents filing errors is worth using. Manual review misses too much.
0 coins
Lorenzo McCormick
Thanks everyone for the advice. I'm going to call the borrower tomorrow to explain our process and timeline, then use that document verification tool before filing. Better to do it right than fast. Appreciate all the input!
0 coins
Carmella Popescu
•Good approach. Communication plus accuracy - that's the way to handle it.
0 coins
Dananyl Lear
•Let us know how it goes! Always curious about how these situations work out.
0 coins
Ana Rusula
•Smart plan. The verification step will give you peace of mind before filing.
0 coins
Axel Bourke
•Perfect. That phone call will probably solve 90% of the pressure you're feeling.
0 coins