UCC termination NJ filing deadline confusion - need guidance
Running into issues with a UCC termination filing and could really use some advice. We had a commercial loan that was paid off back in October, and I thought I had 30 days to file the UCC-3 termination but apparently there's some confusion about the actual deadline requirements. The debtor is asking why their lien hasn't been released yet and I'm starting to panic that I missed something critical. The original UCC-1 was filed in 2019 for equipment financing, and now I'm second-guessing whether I'm supposed to file the termination or if the lender should be handling it. Has anyone dealt with UCC termination procedures recently? I keep reading conflicting information about who's responsible and what the actual timeframe is. The loan was satisfied in full but the UCC is still showing as active when I check the filing records.
37 comments
Join the conversation
Ruby Knight
You definitely need to get that termination filed ASAP. In most cases, the secured party (lender) is responsible for filing the UCC-3 termination within a reasonable time after the debt is satisfied. 30 days isn't a hard legal deadline but it's considered best practice. If you're the borrower, you might want to contact the lender directly and request they file it.
0 coins
Diego Castillo
•This is correct - the secured party has the obligation to file the termination. However, if they don't do it within a reasonable timeframe, the debtor can request it and potentially recover damages if there are problems.
0 coins
Logan Stewart
•I had a similar situation last year and the lender kept dragging their feet. Finally had to threaten legal action before they filed the UCC-3.
0 coins
Mikayla Brown
Wait, are you the lender or the borrower in this situation? That makes a big difference in terms of who should be filing the termination. Also, what state was the original UCC-1 filed in? The rules can vary slightly by jurisdiction.
0 coins
Nina Chan
•Sorry, should have been clearer. I work for the lender and we're the secured party on the UCC-1. The filing was done in the borrower's state since that's where their business is located.
0 coins
Mikayla Brown
•Ok that clarifies things. As the secured party, you definitely need to file the UCC-3 termination. Most lenders try to do this within 30-60 days of payoff to avoid any issues.
0 coins
Sean Matthews
I've been dealing with UCC filings for years and this is a common issue. The key thing is to make sure your UCC-3 termination references the correct filing number from the original UCC-1. I've seen filings get rejected because of mismatched information. Also double-check that the debtor name exactly matches what's on the original filing - even small differences can cause problems.
0 coins
Nina Chan
•That's a good point about the debtor name matching. The company may have changed their legal name slightly since 2019. How strict are they about exact matches?
0 coins
Sean Matthews
•Very strict. Even adding or removing 'LLC' or 'Inc.' can cause issues. You need the debtor name to match exactly as it appears on the original UCC-1.
0 coins
Ali Anderson
•I actually discovered a tool recently that helps with this exact problem. Certana.ai has a document verification system where you can upload your UCC-1 and UCC-3 PDFs and it automatically checks for name mismatches and other inconsistencies. Saved me from filing a termination with the wrong debtor name format last month.
0 coins
Zadie Patel
This is exactly why I hate dealing with UCC filings! The system is so confusing and there's always some technicality that can trip you up. Why can't they just make it simple - loan gets paid off, lien gets released automatically. Instead we have to jump through all these hoops with exact name matches and proper forms.
0 coins
Ruby Knight
•I understand the frustration but the system actually protects everyone involved. Without proper termination procedures, you could have situations where liens stay on record forever even after debts are satisfied.
0 coins
Zadie Patel
•I get that but it shouldn't be so easy to mess up a simple termination filing because of formatting issues.
0 coins
A Man D Mortal
Quick question - is this a regular UCC termination or are you dealing with fixture filings? The process can be different if the original collateral included real estate fixtures.
0 coins
Nina Chan
•Just equipment financing, no real estate involved. Standard UCC-1 filing for business equipment.
0 coins
A Man D Mortal
•Good, that keeps it straightforward then. Just need the standard UCC-3 termination form.
0 coins
Declan Ramirez
One thing to watch out for - make sure you're not accidentally filing a UCC-3 amendment when you mean to file a termination. I've seen people get confused between the different types of UCC-3 forms. A termination completely removes the lien, while an amendment just modifies the existing filing.
0 coins
Nina Chan
•Thanks for the heads up. I'm definitely looking to completely terminate the lien since the loan is paid in full.
0 coins
Emma Morales
•This happened to me once - filed an amendment instead of a termination by mistake. Had to file a second UCC-3 to actually terminate the lien.
0 coins
Declan Ramirez
•Yeah it's an easy mistake to make, especially when you're rushing to get the filing done.
0 coins
Katherine Hunter
Have you checked what the filing fees are for the termination? Some states have reduced fees for terminations compared to original filings, but you want to make sure you're paying the right amount so the filing doesn't get rejected.
0 coins
Nina Chan
•Good point, I hadn't looked into the fees yet. I'll check the state filing office website.
0 coins
Katherine Hunter
•Most states have the fee schedule posted online, and many allow electronic filing which is usually faster and cheaper.
0 coins
Lucas Parker
I had a nightmare situation with a UCC termination last year where we filed everything correctly but there was a data entry error at the filing office and the termination didn't show up in the system for weeks. The borrower was trying to get financing elsewhere and couldn't because the old lien was still showing. Just saying - even when you do everything right, sometimes there can still be delays.
0 coins
Ruby Knight
•That's frustrating but not uncommon. Always good to follow up and confirm the termination was processed correctly.
0 coins
Lucas Parker
•Exactly. Now I always check the records a few days after filing to make sure everything went through properly.
0 coins
Donna Cline
Pro tip: if you're doing a lot of UCC filings, it might be worth setting up an account with the state filing system for faster processing. Many states offer expedited handling for registered users.
0 coins
Nina Chan
•That's a great suggestion. We don't do tons of UCC filings but enough that it would probably be worth it.
0 coins
Donna Cline
•Yeah, and you usually get better tracking and notification features too.
0 coins
Harper Collins
Just wanted to add that I've been using Certana.ai's UCC verification tool and it's been incredibly helpful for catching errors before filing. You just upload your documents and it cross-checks everything - debtor names, filing numbers, all the details. Would have saved me from several rejected filings if I'd found it sooner.
0 coins
Sean Matthews
•Yeah I mentioned that earlier too. Really useful for making sure your UCC-3 matches up with the original UCC-1 exactly.
0 coins
Nina Chan
•Sounds like that could be helpful. I'll look into it before I submit the termination.
0 coins
Harper Collins
•Definitely worth checking out. Much easier than manually comparing all the document details.
0 coins
Diego Castillo
Bottom line - get that UCC-3 termination filed as soon as possible. The longer you wait, the more likely the borrower is to have issues if they need to show clear title for other financing. Most lenders try to handle terminations within 30 days of payoff as standard practice.
0 coins
Nina Chan
•Thanks everyone for the advice. I'm going to double-check all the details and get this filed this week.
0 coins
Diego Castillo
•Good plan. Just take your time to make sure everything matches up correctly before submitting.
0 coins
Fatima Al-Hashemi
One thing that might help is to pull up your original UCC-1 filing and have it side by side when you're preparing the UCC-3 termination. I always do this to make sure I'm copying the debtor information exactly as it appears on the original filing. Also, since your loan was paid off in October and it's now June, you definitely want to get this filed ASAP - the borrower has legitimate concerns about the delay. Most secured parties aim for 30-60 days max after payoff to avoid these kinds of issues. The good news is that once you file the termination correctly, it should clear up quickly in the system.
0 coins