---
title: "UCC-3 amendment"
url: https://carrierkyc.com/glossary/ucc-3
description: "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."
---

# UCC-3 amendment

**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.

Also called: UCC-3, UCC-3 termination, Termination statement. Category: Factoring.

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](https://carrierkyc.com/glossary/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).

> **Red flag: Red flags** A termination filed just before a carrier applies to you, by a party you can't reach. Don't assume a termination is genuine because it appears in the records: a filed record is effective only to the extent it was filed by a person entitled to file it (§9-510). Confirm a surprise termination with the secured party of record.

Search current filings with the [UCC directory](https://carrierkyc.com/tools/ucc-search) and read [UCC searches before funding](https://carrierkyc.com/guides/ucc-search-before-funding). General information, not legal advice: confirm termination and release steps with your counsel.

## Related

- [UCC-1 financing statement](https://carrierkyc.com/glossary/ucc-1)
- [Letter of release (LOR)](https://carrierkyc.com/glossary/letter-of-release)
- [How to run a UCC lien search before you fund a carrier](https://carrierkyc.com/guides/ucc-search-before-funding)
- [50-state UCC search directory](https://carrierkyc.com/tools/ucc-search)
- [Termination fee](https://carrierkyc.com/glossary/termination-fee)

## Sources

- [UCC §9-510: Effectiveness of filed record](https://www.law.cornell.edu/ucc/9/9-510) (Cornell LII)
- [UCC §9-513: Termination statement](https://www.law.cornell.edu/ucc/9/9-513) (Cornell LII)
- [UCC §9-515: Duration and effectiveness of financing statement](https://www.law.cornell.edu/ucc/9/9-515) (Cornell LII)