Quick Guide to Removing UCC Filing Easily

Are you considering terminating a UCC filing but uncertain about the proper procedure? You’ve come to the right place! This guide will provide a step-by-step approach to remove a UCC filing.

What is a UCC Filing?

A UCC filing is an official notice recorded with the Secretary of State to establish a security interest in a tangible property or a company asset. It documents the financial relationship between a creditor and a borrower, and it allows the lender to claim the asset in the event the debtor can’t repay the debt. This filing places a loan or a lien on the borrower’s assets, and it’s used in most significant transactions, including loans, real estate, and business sales.

Reasons to Remove a UCC Filing

There are several reasons why you might want to remove a UCC filing from your assets or your business.

  • You’ve paid off the loan, and you want to clear the lien on your assets.
  • You’ve sold the asset or property, and the buyer requires you to remove the UCC filing.
  • You’ve refinanced the loan with another creditor, and you need to clear the original filing.
  • You filed a UCC financing statement, but you no longer need it to secure your financial interest.

Steps to Remove a UCC Filing

The process for removing a UCC filing is fairly straightforward. Follow these steps to ensure you’ve completed all the required actions:

Step 1: Find the Right Form

You’ll have to submit a UCC termination statement to the Secretary of State in the same state where you originally filed the UCC-1 statement. Find the appropriate form on the Secretary of State website or contact their office for the correct form. Some states might provide both online and paper forms, allowing you to choose the most convenient option.

Step 2: Locate the UCC-1 Statement

You’ll need to locate the original UCC-1 statement that you want to terminate. You can find it at your county recorder’s office, where it was recorded when you first filed it. Once you have your UCC-1 statement, you can easily find the file number, which you’ll need to complete your termination statement.

Step 3: Fill Out the Termination Statement

Enter the file number of the original UCC-1 statement, the names of the debtor and the secured party, and the date when you originally filed the statement. Attach a copy of the original filing and ensure that all the information in the termination statement matches the original UCC-1 statement.

Step 4: Get Signatures

You’ll need to get the signatures of the debtor and the secured party to show that both parties agree to the termination of the UCC filing. If the original UCC filing had multiple secured parties, you’ll need to get signatures from all of them. All parties must sign in front of a notary public or an authorized representative from the county recording office.

Step 5: Submit the Termination Statement

Submit the completed termination statement to the Secretary of State office through mail or online submission portal. You might have to pay a fee to process the termination, and the fee varies from state to state. Once the records are updated, you’ll receive confirmation that the UCC filing has been terminated officially.

Conclusion

Removing a UCC filing can seem intimidating, but with the right information, the process is simple and straightforward. Be sure to follow all the steps and pay close attention to detail to avoid any mistakes that could cause delays or complications. Now that you know how to remove a UCC filing, you can confidently manage any UCC-related issues that might arise in the future!

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