Termination Statement
A termination is a UCC-3 that ends a UCC-1’s effectiveness — commonly filed when a secured loan is paid off.
A termination statement releases the secured party’s interest recorded by a UCC-1. It’s typically filed when the underlying obligation is satisfied — for example, when a loan or advance is paid in full.
Once terminated, the financing statement no longer perfects a security interest in the collateral.
Why it matters for lenders
For a lender, a termination on a prospect or existing borrower can be an opportunity signal — a competing position just cleared, which may open room to fund or refinance.
Related terms
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