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#2003893 - 03/25/15 02:32 PM UCC Termination
SUSANE1 Offline
Platinum Poster
Joined: Mar 2008
Posts: 808
We have a UCC on a loan that is about to pay off. We are making another loan to same customer but the loan won't be booked until approximately one month from now. Since we don't have an active loan, will our UCC still be in "first position" until we can get the new loan booked?

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Article 9
#2024774 - 07/02/15 05:09 PM Re: UCC Termination SUSANE1
Smiles Offline
New Poster
Joined: Jan 2007
Posts: 19

My understanding is as long as you don't terminate your filing your lien position you currently hold would be maintained.

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#2081588 - 06/02/16 08:16 PM Re: UCC Termination SUSANE1
OkLender Offline
New Poster
Joined: Dec 2011
Posts: 16
As a matter of practice, I would complete a UCC1 search on the debtor to make sure everything is still in place before advancing new funds. There is no one filing the policing of documents. Additionally, the search would identify any other debtors that may be under the understanding that your loan has paid off. You should also be sure of what your loan documents (security agreement and note) say about future advances.

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#2093103 - 08/13/16 02:35 PM Re: UCC Termination SUSANE1
Rocky P Online
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
Is the collateral on both loans similar (or similarly described)?
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#2093686 - 08/17/16 02:35 PM Re: UCC Termination SUSANE1
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
I'm with RP and OkLender - If the collateral of the new note would be covered by the existing UCC I would perform a UCC search to make sure there are no intervening liens. Remember that your perfection isn't just on the existence of the recorded UCC but on the executing of the proper documents and funding. An intervening lien could prove to be dangerous.
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