Release of Security Interest - Termination Statement
Definition and meaning
A Release of Security Interest - Termination Statement is a legal document used to terminate a security interest, which is a legal claim on collateral that a lender has on a debtor's property. This statement is typically filed with a government office to officially signify that a loan has been repaid or a debt has been settled. Once filed, it formally removes the lender's claim on the debtor's property.
How to complete a form
Completing the Release of Security Interest - Termination Statement involves the following steps:
- Provide the file number of the original financing statement.
- Enter the place where the original statement was filed.
- Indicate the date the original financing statement was filed.
- Fill in the name and address of the debtor.
- Insert the name and address of the secured party.
- Sign and date the form to certify that the secured party no longer claims a security interest.
Who should use this form
This form is primarily used by secured parties and debtors who have previously entered into a secured transaction. If a loan has been paid off or a debt has been satisfied, the secured party should file this termination statement to release their security interest. This form is essential for ensuring clear ownership of the property moving forward.
Key components of the form
The main components of the Release of Security Interest - Termination Statement include:
- File number of the original financing statement.
- Names and addresses of both the debtor and the secured party.
- Date the original statement was filed.
- Signature of the secured party.
- Certification that the security interest is no longer claimed.
Common mistakes to avoid when using this form
When filling out the Release of Security Interest - Termination Statement, users should be mindful of the following common errors:
- Omitting the file number or the date the original statement was filed.
- Failing to sign the form or providing an incorrect signature.
- Incorrectly entering names or addresses of either party.
- Not filing the form with the appropriate government office.
Form popularity
FAQ
After receiving your request, the lender has 20 days to terminate the UCC filing.
If you ever find yourself in that frustrating situation the answer is: Yes, you can, providing there is no existing obligation to the lender. This is provided for in Section 9-513 of the Uniform Commercial Code.
The secured party has 20 days to either terminate the filing or send a termination statement to the debtor that the debtor can then file. If this does not happen within the 20-day time frame, the debtor may file a UCC-3 termination statement.
By Practical Law Finance. This note describes the practicalities of releasing a mortgage or charge that has been given by a security provider over its property, assets and undertaking to a lender under a security agreement.
A UCC-3 termination statement (a Termination) is a required filing that terminates a security interest that has been perfected by a UCC-1 filing. 1. A Termination for personal property is accomplished by completing and filing form UCC-3 with the Secretary of State's office in the appropriate state.
Enter your information. The type of information you can use to search UCC filings varies among states. Retrieve your results. The website will return results based on the information you entered. Record financial statement numbers.
Rules vary by State around releasing a UCC lien after a borrower satisfied the debt. Primarily there are two main ways to remove them. One way is by having the lender file a UCC-3 Financing Statement Amendment. Another way to remove a UCC filing is by swearing an oath of full payment at the secretary of state office.
A short-form agreement releasing a security interest in intellectual property (IP) included as collateral in a secured loan transaction. This release can be recorded with the US Patent and Trademark Office (USPTO) and US Copyright Office to terminate and release security interests filed against US IP.
