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A UCC 3 Subordination is a form used when more than one lender has an interest in the same collateral. In this situation, a subordination agreement should be signed in order to establish the order in which the lenders will be refunded the money.
The secured party may assign the rights to some portion or percentage of all the collateral covered by the initial UCC financing statement to another party. (A partial assignment.)
3 is used as a way to amend that original lien filing and do things like terminate the UCC, edit any of the details of the lien, or assign your interests to another secured party for the lien.
Assignment and Release: A secured party may, at its discretion, assign part or all of a security interest to another party and/or release part or all of the collateral covered by a security interest.
The UCC-3 is the Swiss-Army-Knife of forms. Unlike a UCC 1, a UCC-3 can be used for multiple purposes. The actions one can take are Amendment, Assignment, Continuation, and Termination.
Paper filings and search requests are no longer accepted by the state or county filing offices. A statewide perfection of a loan may be obtained by completing the filing in the online North Dakota Central Indexing System (NDCIS).