Glossary · Factoring
UCC-3 amendment
Also called: UCC-3, UCC-3 termination, Termination statement
Definition
A UCC-3 is the amendment form used to change a filed UCC-1, including terminating it, continuing it, releasing collateral, or assigning it to another secured party.
The UCC-3 that matters most to factors is the termination. Under §9-513(c), once the debtor makes an authenticated demand, the secured party has 20 days to file or send a termination if the conditions are met; for sold accounts, that means the account debtors have paid. Once a termination is filed, the financing statement stops being effective (§9-513(d)).
When a carrier switches to you, ask the prior factor for a letter of release and a UCC-3 that terminates its filing or releases the collateral you are buying. A continuation, also filed on a UCC-3, keeps a UCC-1 alive for another 5 years if it is filed within the 6 months before lapse (§9-515).
Search current filings with the UCC directory and read UCC searches before funding. General information, not legal advice: confirm termination and release steps with your counsel.
Sources
- 01UCC §9-510: Effectiveness of filed record · Cornell LII
- 02UCC §9-513: Termination statement · Cornell LII
- 03UCC §9-515: Duration and effectiveness of financing statement · Cornell LII