UCC Filing
Uniform Commercial Code
a collection of standardized laws on the contracting and trade of goods that has been adopted by the majority of states in the U.S. A UCC lien usually results when an entity lends money to a debtor, and the debtor pledges collateral to the lender in exchange for the loan.
Terminations
If the financing statement is not renewed by the filing of a UCC renewal, the statement lapses and the lien becomes unperfected. This means that the lien may not be recognized if challenged in court by another lienholder or creditor of the small business. The lender must also file a UCC termination statement if the loan is paid in full. The termination statement gives notice that the lien is no longer effective.