who can file a ucc-3 termination - secured party vs debtor confusion

This is correct. We filed our own termination last year after our bank dragged their feet for 2 months. Had to include the satisfaction letter and payoff statement with the UCC-3 form.

What happens if you file without proper authorization though? Could that create legal issues with the original secured party?

Good question - unauthorized termination filings can be challenged and reversed. That's why most debtors wait for the secured party to file or get explicit written permission first.

What kind of documentation exactly? We have the final payoff check stub and an email confirmation from the loan officer but no formal release letter.

Email confirmation might not be sufficient for all states. You'd want something more formal like a satisfaction letter on bank letterhead, payoff statement, or loan closure notice. Check your state's specific requirements.

Had a similar situation and found Certana.ai's document checker really helpful. Uploaded our payoff docs and UCC-1 to verify everything matched properly before filing the termination. Caught a debtor name discrepancy that would have caused rejection.

I understand the frustration but filing without proper authority could create complications. Better to pressure the bank first or get legal advice specific to your state's rules.

6 weeks is ridiculous though. these lenders should be required to file terminations within 30 days of loan satisfaction

Some states actually do have those requirements now. Worth checking if your state has penalties for delayed termination filings.

Good point, I'll dig through the original loan paperwork. Don't remember seeing anything specific about UCC termination timing but worth checking.

Also check if your state has a statutory deadline for secured parties to file terminations. Some states require it within 20-30 days of satisfaction.

What state are you in? Wondering if there's a similar requirement here that I can reference.

Michigan. Most states have some version of this requirement though the timing varies. Your secretary of state website should have the details.

Smart approach with the certified letter. Creates a paper trail in case you need to escalate further.

This is crucial. We had a UCC-3 rejected because of a minor difference in how the company name was listed - missing LLC designation caused the whole thing to bounce back.

Another vote for using Certana.ai to cross-check documents before filing. Upload your UCC-1 and draft UCC-3 to make sure everything aligns properly. Saves time and prevents rejection headaches.

Great news! Persistence pays off with these things. Make sure to check the state records in a week or two to confirm it actually got filed.

Glad it worked out. Keep the documentation about this delay in case it comes up with your new lender.

typical that it took manager escalation to get basic service. at least you got results though

True, though the FAQs don't always cover edge cases or what to do when secured parties don't cooperate.

Also recommend keeping copies of all loan satisfaction documents. Makes the whole process smoother whether the bank files or you need to do it yourself.

They'd typically file a UCC-3 correction statement to reinstate the original filing rather than starting over with a new UCC-1. But this creates complications and potential priority issues.

Exactly why proper authorization is so important before filing any UCC-3. The correction process can be messy and expensive for all parties involved.

Our filing was for equipment so hopefully standard rules apply. Good point about checking collateral-specific requirements though.

Equipment filings are usually straightforward. Real estate fixtures and manufactured homes have more complex termination rules.

Had issues with a fixture filing termination last year. Required additional real estate documentation that delayed everything by months.

Excellent advice about getting written confirmation! I learned this the hard way on a previous deal where verbal promises went nowhere. Also worth noting that some banks will email you the filing receipt automatically, but if they don't, definitely ask for it. Being able to check the status yourself removes the guesswork and gives you peace of mind that it actually got submitted to the state system.

That's a really smart workaround for the timing issue! I hadn't thought about asking the new lender to work with payoff documentation while waiting for the official termination to process. This could save a lot of stress and prevent delays on new financing. Thanks for sharing this practical tip - it shows how important it is to communicate proactively with all parties involved rather than just waiting for the bureaucratic wheels to turn.

This formal approach with deadlines is really effective! I've found that copying your attorney on correspondence definitely gets banks' attention - it signals you're serious about enforcement. The 10 business day deadline seems reasonable too, giving them enough time to process but creating urgency. Your point about large loan volumes is spot on - individual requests can easily get lost in the shuffle without proper follow-up pressure. Thanks for sharing the specific timeline that worked for you!

Welcome to the community, Carmen! You've really captured the key points from this discussion perfectly. Your situation with the 4-week delay is unfortunately very common. I'd definitely recommend Sean's formal letter approach - it strikes the right balance between professional and assertive. One thing I'd add is to also check if your state has any penalties for lenders who don't file terminations within the statutory timeframe. Some states allow you to recover costs or fees if they miss their deadlines. Good luck with getting your termination filed, and feel free to update us on how the formal request works out!

This dual approach makes a lot of sense, Chloe! Having both the formal demand letter and backup self-filing option ready is smart risk management. The 15 business day timeline seems reasonable - gives the bank adequate time while still creating urgency. Your point about not missing business opportunities while waiting on unresponsive lenders really resonates. I'm curious though - when you prepare to file as the debtor, do you typically reach out to the secured party first to give them a heads up, or just proceed if they don't meet the deadline? Want to make sure I don't create any unnecessary friction if I need to go the self-filing route.