The UCC provides that UCC-1 financing statements have an effective duration of five years. This means that if the financing statement is not renewed by the filing of a UCC renewal, the statement lapses and the lien becomes unperfected. This means that the lien may not be recognized if challenged in court by another lienholder or creditor of the small business.
The lender must also file a UCC termination statement if the loan is paid in full. The termination statement gives notice that the lien is no longer effective.
Once your company pays off a secured loan, you should immediately request that the lender terminate its UCC-1 filing. If you fail to ask for a termination, the filing will expire five years from the date of filing. For loans exceeding five years, a lender must file a continuation before the end of the five years to maintain its status as a secured lender.
So, it would appear that the UCC filings are within 5 years. As such, regardless if you paid off the underlying loan - you have to demand that the lender file a termination of the UCC filing.
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