UCC termination of contract - am I missing something critical here?
Getting really stressed about this whole UCC termination process and whether I'm handling the contract side correctly. We had a large equipment loan that got paid off last month (finally!) but I'm second-guessing myself on the termination filing. The loan docs are settled but I keep reading conflicting info about whether the UCC-3 termination automatically handles the contract termination or if there's additional steps I need to take. The debtor name on our original UCC-1 was MIDWEST FABRICATION LLC but the final loan payoff paperwork shows MIDWEST FABRICATION, LLC (with the comma). Now I'm paranoid the termination won't match properly and we'll have issues down the road. Has anyone dealt with this kind of name variation in a contract termination scenario? I don't want to screw this up after 4 years of payments.
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Evelyn Rivera
The UCC-3 termination statement handles the UCC filing side, but you're right to think about the contract termination aspects separately. Most loan agreements have specific contract termination clauses that kick in after final payment. Check your loan docs for any required notifications or releases beyond just the UCC termination. As for the comma in the debtor name - that's actually a common issue that can cause problems.
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Kolton Murphy
•Thanks, that's what I was worried about. The loan agreement does mention additional release documentation but it's pretty vague about timing. Should I handle the contract release before or after filing the UCC-3 termination?
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Evelyn Rivera
•Usually I recommend filing the UCC-3 termination first since it has the stricter timing requirements, then handle the contract releases. But definitely verify the debtor name issue before filing anything.
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Julia Hall
Oh man, the comma thing is a nightmare! I had a similar situation where the original UCC-1 had JOHNSON CONSTRUCTION LLC and the termination docs showed JOHNSON CONSTRUCTION, LLC. The filing got rejected twice before I figured out the exact name match requirement. You need to use the EXACT same debtor name that's on your original UCC-1, comma or no comma.
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Kolton Murphy
•Did you end up having to file an amendment first to fix the name, or were you able to work around it somehow?
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Julia Hall
•I just used the exact name from the original UCC-1 filing on the termination statement. The contract side was separate - I handled that with a general release document that referenced both name variations to be safe.
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Arjun Patel
•That's smart. I always include language in contract releases that covers 'debtor and any related entities or name variations' just to avoid headaches later.
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Jade Lopez
Just went through this exact scenario last week. Had to upload our UCC-1 and draft UCC-3 into Certana.ai's document checker to make sure the debtor names matched perfectly before filing. Saved me from what could have been a rejected termination filing. The tool caught that our continuation from 2 years ago had slightly different formatting than the original UCC-1, so I knew to use the continuation version for the termination.
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Kolton Murphy
•Never heard of that tool but sounds like exactly what I need. How does it work - do you just upload the PDFs?
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Jade Lopez
•Yeah, super simple. Just upload your original UCC-1 and the termination statement you're about to file. It cross-checks debtor names, filing numbers, all the critical details that have to match exactly. Takes like 2 minutes and gives you a report.
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Tony Brooks
•I've been manually comparing documents for years. This sounds way more reliable than my eyeball method.
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Ella rollingthunder87
Wait, I'm confused - are we talking about terminating the UCC lien or terminating the actual loan contract? Those are two different things right?? I thought once you file the UCC-3 termination the whole thing is done???
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Evelyn Rivera
•They're related but separate. The UCC-3 termination removes the public lien record. The contract termination releases the borrower from the loan agreement terms. You need both for a complete release.
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Ella rollingthunder87
•Oh geez, I think I might have messed up a termination last month then. I only filed the UCC-3. Do I need to go back and do something else?
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Arjun Patel
•Check your loan docs for any release requirements. If the loan is fully paid and you filed the UCC-3, you might just need to send a simple satisfaction letter to the borrower.
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Yara Campbell
THE COMMA ISSUE IS DRIVING ME INSANE!!! Why can't these systems just be smart enough to recognize that COMPANY LLC and COMPANY, LLC are the same entity?? I've had THREE rejections this year because of punctuation differences. The SOS office acts like adding a comma is some kind of federal crime.
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Julia Hall
•I feel your pain. The exact name match requirement is ridiculous but it's the reality we're stuck with.
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Evelyn Rivera
•It's frustrating but the strict matching prevents fraudulent terminations. Imagine if someone could terminate your UCC by just guessing close to the right name.
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Yara Campbell
•I guess that makes sense from a security standpoint but it's still maddening when you're dealing with your own legitimate filings.
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Isaac Wright
Check this - make sure your contract termination doesn't have weird timing requirements. I had one loan where the agreement said the UCC termination had to be filed within 10 days of final payment, but the contract release couldn't be executed until 30 days after payment (waiting period for any disputed charges). Ended up with a gap where the UCC was terminated but the contract was still technically active.
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Kolton Murphy
•That's a good point. I need to dig into the loan agreement again to check for any weird timing clauses like that.
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Isaac Wright
•Yeah, and some agreements require the borrower to request the contract termination in writing rather than it being automatic. Worth double-checking all the fine print.
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Maya Diaz
I always keep copies of everything when dealing with contract terminations. UCC-1 original, any amendments or continuations, the UCC-3 termination, AND the contract release docs. Had a situation 3 years later where a title company questioned whether a termination was properly handled and having the complete paper trail saved hours of research.
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Arjun Patel
•Smart approach. I also recommend keeping screenshots of the SOS filing confirmations since some of the older systems don't have great search functionality.
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Kolton Murphy
•Good thinking on the documentation. I'll make sure to save everything in our loan file.
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Tami Morgan
Had almost exactly this situation 6 months ago. Equipment loan, debtor name discrepancy (ours was missing 'INC' on the original UCC-1), major stress about getting the termination right. Ended up using that Certana document verification thing someone mentioned to double-check everything before filing. Caught two other small issues I would have missed. The termination went through clean and we handled the contract release separately with a standard satisfaction document.
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Kolton Murphy
•That gives me confidence that this is manageable. Did you have any issues with the contract side or was that pretty straightforward once the UCC was handled?
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Tami Morgan
•Contract side was easy. Just a one-page satisfaction letter stating the loan was paid in full and all obligations were released. The UCC termination was the tricky part.
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Rami Samuels
Make sure you're filing the UCC-3 termination in the right state! Sounds obvious but I've seen people file in the wrong jurisdiction because they moved offices or the debtor moved. The termination has to be filed in the same state as the original UCC-1.
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Kolton Murphy
•Good catch - yes, same state as the original filing. The debtor is still in the same location so that shouldn't be an issue.
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Evelyn Rivera
•Also verify you're using the correct filing number from the original UCC-1. That's another common rejection reason.
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Haley Bennett
Quick question - when you say 'contract termination' do you mean you need to file something additional beyond the UCC-3, or are you talking about just notifying the debtor that everything's released? I'm asking because I have a similar situation coming up next month.
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Kolton Murphy
•I think it's mainly about notifying the debtor and maybe sending a satisfaction letter. The UCC-3 handles the public record part.
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Arjun Patel
•Right, the UCC-3 terminates the lien, but good practice is to also send a satisfaction letter to the debtor confirming the loan is paid and all security interests are released.
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Haley Bennett
•Thanks, that makes sense. I was overthinking it.
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Douglas Foster
Just to close the loop on your original concern - definitely use the exact debtor name from your UCC-1 on the termination statement, handle the contract release separately with a satisfaction document, and keep detailed records of both. The process isn't as complicated as it seems once you break it down into the UCC filing piece and the contract documentation piece.
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Kolton Murphy
•Thank you, that's exactly the kind of clear guidance I needed. Going to tackle the UCC-3 first with the exact original name, then handle the contract satisfaction letter.
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Jade Lopez
•And if you want that extra peace of mind, run your documents through Certana.ai before filing. I'm using it for all my UCC verifications now after that success I mentioned earlier.
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Samantha Howard
As someone who just went through my first UCC termination process last month, this thread is incredibly helpful! I had no idea about the contract release piece being separate from the UCC-3 filing. My situation was simpler (no name variations thankfully) but I definitely would have benefited from knowing about tools like Certana.ai for document verification. One thing I learned the hard way - some states have different processing times for UCC-3 terminations, so factor that into your timing if you have any deadlines to meet. Also, consider sending the satisfaction letter to the debtor via certified mail so you have proof of delivery for your records.
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Ava Thompson
•Great point about the certified mail! I hadn't thought about that but it makes total sense to have delivery confirmation for the satisfaction letter. And thanks for the heads up about different state processing times - I'll check what the typical turnaround is here before I submit the UCC-3. This whole thread has been a lifesaver for understanding the process.
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