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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
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I purchased a business 5 years ago and signed a promisory note

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I purchased a business 5 years ago and signed a promisory note to pay the seller (an individual) monthly for 5 years to satisfy the purchase price. The seller held the note and filed a UCC 1 with the State of Florida to secure the equipment in the event of a default. I now have only 2 payments left to satisfy the promisory note. 1) How is the UCC1 that has been filed with the State of Florida invalidated when I satisfying the loan and 2) should I receive any documentation from the seller showing that the loan has been satisfied, and if so, what type of documentation should the seller be furnishing me?
Submitted: 4 years ago.
Category: Business Law
Expert:  JBaxLaw replied 4 years ago.

BizAttorney :

Hello,

BizAttorney :

I will be assisting you.

BizAttorney :

When a debt underlying a UCC lien is paid, a release is filed. The UCC 3 - statement of change allows one to indicate a lien has been released.

BizAttorney :

The filing fees and forms are provided by a contractor for the State of Florida Secretary of State's Office and can be found at:

BizAttorney :

Please note, nothing herein is intended as legal advice, no legal advice is being provided, no attorney-client relationship will be established and only general information is provided so that you may analyze your situation. Only an attorney in your state can tell you if you have a "case." Understand that the information provided is general in nature and not provided considering the details of your situation.

Please let me know if you have any other questions.

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Thank you so much

Customer: replied 4 years ago.

Thank you for the info on the UCC1.....as the seller filed the UCC-1, is it the sellers responsibility to file the UCC3 release? And I didn't see an answer to part 2 of my question; 2) should I receive any documentation from the seller showing that the loan has been satisfied (i.e., the original promissory note stamped and dated as "loan satisfied" ) and if so, what type of documentation should the seller be furnishing me?

Expert:  JBaxLaw replied 4 years ago.

The party who files a lien would have an obligation to provide the release. Also, when payment of a loan is complete some statement, letter or other document is typically provided to the debtor to show the debt is paid. If it is not provided, a debtor will normally request such documentation.

 

Thank you very much

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