Continuation Statement
A continuation is a UCC-3 that extends a UCC-1 before it lapses, keeping the security interest perfected.
A UCC-1 lapses five years after filing unless the secured party files a continuation statement. A continuation must be filed within the six months before the lapse date and extends effectiveness for another five years.
If the deadline is missed, the financing statement lapses and the security interest becomes unperfected — which can drop the lender’s priority.
Why it matters for lenders
A continuation tells you a lender is deliberately staying in position on a borrower. Its absence, near a lapse date, can signal the relationship is winding down.
Related terms
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