UCC termination for decommissioning security agreement - timing questions

This makes sense, but what if the lessee is pushing for the termination to be filed earlier? We're getting pressure to file it concurrent with the start of the decommissioning process.

Push back on that. Once you file the UCC-3 termination, your security interest is gone. If something goes wrong during the 6-week return process - equipment gets damaged, goes missing, or they try to claim they never had certain pieces - you'll have no recourse. The lessee's impatience is not your problem.

That's a good approach. Did you run into any issues with the lessee's financing or credit arrangements during that extended period? I'm worried they might need the termination filed sooner for their own financial reasons.

Yes, they did have some pressure from their new lender, but we worked out a compromise. We provided a letter of intent to terminate once the return process was complete, which satisfied their lender's requirements without actually releasing our security interest prematurely.

I haven't heard of Certana.ai before. Is it difficult to use with multiple UCC filings across different states?

Not at all. You just upload the PDFs and it automatically cross-checks everything. For multi-state situations like yours, it's particularly useful because it can spot discrepancies between how different states handle debtor names or collateral descriptions. Much faster than manually comparing documents across jurisdictions.

I've used similar tools and they're definitely worth it. Manual document comparison is where most filing errors happen, especially when you're dealing with amendments and terminations that reference the original UCC-1.

Good point. Our agreement does say 'until all equipment is returned and inspected,' so that supports waiting until the end of the process.

Exactly. That language gives you clear justification for holding off on the termination filing until your inspection is complete. Document everything during the return process - photos, condition reports, serial number verification - in case there are any disputes later.

That's a different situation entirely. If you're changing debtors, you typically need to file an amendment (UCC-3) to change the debtor information, not a termination followed by a new filing. But you need to be careful about the timing and make sure there's no gap in your perfected security interest.

That makes sense. I was overthinking it. An amendment is definitely cleaner than terminating and refiling.

That's a great point about potential liens. I hadn't thought about repair shop liens or other complications that could arise during the return process.

Yeah, it was a nightmare. The lessee had taken one of the machines to a repair shop and it broke down there. The shop claimed a mechanic's lien for the repair costs. We had to negotiate with the shop to release the lien before we could consider that piece of equipment properly returned.

That's a great analogy. I think I was getting pressured by the lessee's timeline and losing sight of the bigger picture.

Exactly. The lessee's urgency is not your emergency. They had years to plan for this equipment return - they can wait a few extra weeks for you to do it properly.

We have filings in Ohio, Michigan, and Indiana. Are there any specific quirks I should be aware of with those states?

Ohio can be particularly picky about debtor names matching exactly. Michigan and Indiana are generally more forgiving, but it's still better to be precise. Double-check your debtor names against the original UCC-1 filings before submitting the terminations.

You're absolutely right. I think I needed to hear this from multiple people to feel confident about pushing back on the lessee's timeline.

That's a good point. We do have some equipment that was upgraded during the lease term. I'll make sure to document those modifications during the return process.

Definitely do that. We had a case where a lessee claimed that software upgrades they had installed were not part of the original equipment. Having detailed documentation of the original configuration versus the returned configuration saved us from a potential dispute.

Smart decision. And definitely consider using Certana.ai to verify your termination documents before filing - it'll catch any discrepancies that could cause rejections or delays.

Good choice. Better to be cautious now than to deal with problems later when you have no recourse.