What is a Termination - An original UCC-1 financing statement is effective for five years from the date of its filing. After the five year period the UCC-1 is automatically terminated. A UCC-1 can be extended for another five years if a continuation statement is filed within months 54 - 60. Conversely, when a financing agreement is paid in full prior to the five year period, the lender should file a UCC-3 (sample termination filing) to terminate the existing UCC-1 filing and remove the lien. This UCC-3 is the "Termination" data that EDA captures.
When did EDA begin capturing Terminations - In January 2009, EDA began capturing UCC-3 terminations. This additional data became available to our customers in late 2009.
How does EDA capture and report Terminations - EDA acquires the UCC-3 termination filings from each state. The UCC-3 document references the original UCC-1 filing that is being terminated. Based on this information, EDA compares the termination to all previous UCC-1 filings in our database. When there isa match between the filing id that is being terminated and the UCC-1 filing id in our database, EDA reports all the equipment on the original UCC-1 filing as terminated.
Below is an example of two Takeuchi track skid steer loaders that were terminated via a UCC-3. The TL-140 was originally filed on a UCC-1 in December 2007 and a UCC-3 was filed less than 24 months later in November 2009 to terminate the lien. Consequently, because the termination document does not typically referesnce the specific equipment (ex. Age, Mfr, Model, Serial #), EDA uses the original equipment information from the UCC-1 filing to populate information for the termination.