When a Florida business pays off an equipment loan, SBA note, or merchant cash advance, lenders frequently fail to file a UCC-3 Termination Statement. Automated bank underwriting algorithms treat an active UCC-1 as an existing blanket encumbrance and reject new loan applications in seconds.
Under Florida's adoption of Uniform Commercial Code § 9-513(c), once no obligation remains, the secured party has exactly 20 days after receiving an authenticated demand from the debtor to file a termination statement. If the lender fails to act within 20 days, the debtor is legally authorized under UCC § 9-509(d)(2) to file the UCC-3 termination directly and claim $500 statutory damages plus actual credit losses under UCC § 9-625.
Under Florida UCC § 9-513(c), the secured party must file or send a UCC-3 termination statement within 20 days of receiving an authenticated demand from the debtor.
Yes. If the secured party fails to respond within 20 days of your authenticated demand, UCC § 9-509(d)(2) permits the debtor to file the termination statement directly with the Florida Secretary of State.