Get funds backed by assets or future cash flow – that fit anywhere in your capital stack.
Paying off a business obligation does not always remove the related UCC filing automatically. If the lien remains active, it can delay new financing, create confusion during underwriting, and make it appear that a creditor still has a claim against your assets. Capital Desk’s UCC-3 Termination service helps businesses identify satisfied liens, coordinate the release process, and clear outdated filings from the public record.
A UCC-3 Termination is best for businesses that have fully satisfied a secured loan or financing obligation but still have an active UCC filing on record. It may also be appropriate when an old lien appears during refinancing, a business sale, or a new credit application and the underlying obligation has already been resolved. If you’re not aware of what liens might exist on your business, we can help you with a UCC-1 Lien Search.
Terminating a satisfied UCC filing helps clarify that the secured party no longer claims an interest under the identified financing statement. It can reduce delays during underwriting, improve the accuracy of your company’s public lien profile, and help clear the way for refinancing, new financing, or other business transactions.
Capital Desk helps you move from identifying of liens to termination of liens. We review the available filing information, help determine what documentation may be needed, and coordinate the termination process with the appropriate parties and filing office. We can also perform a UCC-1 Lien Searches and UCC Monitoring, to confirm what remains on record after the termination is processed.
We serve clients nationwide, and have delivered capital to 48 States, Puerto Rico, and Canada.
Since September, 2023, we’ve deployed $150M+ to clients across an array of industries.
A UCC-3 termination is a filing used to terminate the effectiveness of an identified UCC financing statement with respect to the security interest of the authorizing secured party. The UCC-3 form can also be used for other amendments, but the termination box specifically indicates that the filing is being terminated.
You may need a UCC-3 termination when a secured obligation has been paid in the past, and you’re trying to raise money in the present. Or if a lien has been otherwise satisfied but the related financing statement still appears active. Removing the outdated filing can prevent unnecessary complications during future financing or business transactions, such as exits.
Not necessarily. Paying the obligation and terminating the public UCC filing are separate steps. A termination statement may still need to be authorized and filed with the appropriate filing office.
The right to authorize a termination depends on the circumstances and applicable state law. Generally, the secured party of record controls the filing, although Article 9 provides limited circumstances in which a debtor may authorize a termination after the secured party fails to meet its obligations. Those requirements should be confirmed before filing.
The filing generally requires the initial financing statement number and identification of the amendment as a termination. Additional information or documentation may be needed depending on the filing office and the circumstances surrounding the lien.
The first step is usually to contact the secured party and provide evidence that the obligation has been satisfied. Depending on applicable law, the secured party may be required to file or provide a termination statement after receiving a proper demand. The rules and timing vary by jurisdiction.
Timing depends on how quickly the secured party responds, whether the necessary documentation is available, and the processing time of the applicable filing office.
Yes. After the UCC-3 termination is processed, Capital Desk can perform a follow-up UCC-1 Lien search to confirm how the filing appears in the public record, and UCC lien monitoring to catch new ones in the future.