Sample Letter for UCC-3 Termination Statement
What this document covers
The Sample Letter for UCC-3 Termination Statement is a legal document used to formally terminate a previously filed Uniform Commercial Code (UCC) financing statement. This form allows a debtor or secured party to notify creditors and other interested parties that an obligation has been satisfied or that a security interest is no longer valid. Unlike other UCC forms, the UCC-3 focuses specifically on termination rather than continuation or amendments.
Key components of this form
- Date of the letter
- Name and address of the secured party
- Name and address of the debtor
- Reference to the original UCC-1 filing
- Statement indicating the termination of the UCC filing
When to use this document
This form should be used when a debtor has paid off a secured loan or otherwise satisfied the obligation, and the secured party needs to confirm this by officially terminating the UCC filing. It is also applicable when a secured party no longer intends to maintain a security interest in the collateral described in the original UCC-1 form.
Who this form is for
The following individuals or entities should consider using this form:
- Secured parties who are discharging their security interests
- Debtors who wish to confirm the release of a lien
- Attorneys acting on behalf of clients dealing with secured transactions
How to prepare this document
- Enter the date at the beginning of the letter.
- Provide the name and address of the secured party.
- List the name and address of the debtor.
- Clearly reference the original UCC-1 filing details.
- Include a statement expressing the termination of the UCC filing.
Does this form need to be notarized?
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
Mistakes to watch out for
- Failure to accurately reference the original UCC-1 filing.
- Not including all required names and addresses.
- Omitting the date, which can lead to confusion about the effective termination date.
Benefits of using this form online
- Convenient and easy access from any device.
- Editable format allows for quick customization.
- Reliable source, drafted by licensed attorneys.
Form popularity
FAQ
After receiving your request, the lender has 20 days to terminate the UCC filing.
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.
When the debtor has satisfied all amounts owed to the lender, a UCC-3 termination statement (now called a UCC termination statement) is routinely filed to terminate the security interest perfected by the UCC-1 financing statement.
Form UCC3 is used to amend (make changes to) a UCC1 filing.However, it is important to note that for a UCC1 filing a termination is only an amendment and that the UCC1 filing may be amended further, even after a termination has been filed. Box 3 Continuation A UCC1 filing is good for five years.
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.
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 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.
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.
When the debtor has satisfied all amounts owed to the lender, a UCC-3 termination statement (now called a UCC termination statement) is routinely filed to terminate the security interest perfected by the UCC-1 financing statement.
