| Feature | UCC-1 (Financing Statement) | UCC-3 (Amendment) |
|---|---|---|
| Purpose | To establish a public record of a security interest in personal property. | To modify, terminate, continue, or assign an existing UCC-1 filing. |
| Timing | Filed at the start of a lending relationship or transaction. | Filed during the 5-year life of the original statement. |
| Typical Use Case | New equipment lease, business loan, or line of credit. | Loan payoff (Termination) or 5-year extension (Continuation). |
| Effect on Lien | Creates the "Perfected" status of the security interest. | Maintains, alters, or releases the perfected status. |
Common UCC-3 Action Types
The UCC-3 is a multi-purpose form. Here are the most frequent filings:
Termination
Filed when a loan is paid in full. It releases the secured party's interest in the collateral and "clears" the debtor's record.
Continuation
Standard UCC filings lapse after 5 years. A continuation extends the perfection for another 5-year period.
Assignment
Used when a secured party transfers their rights in the collateral to another lender or entity.