North Carolina Merchant Cash Advance Attorney
Dominick Dale of Merchant Cash Advance Law Firm P.C. is your aggressive and highly competent North Carolina merchant cash advance attorney. With a nationwide practice representing small businesses against MCA practices, he has extensive experience protecting business clients and understands what you are going through. Dale knows MCA laws inside and out, and he is relentless in fighting oppressive and crooked MCA companies in court. His goal is to ensure your business gets the fair treatment it deserves.
What Is A UCC Lien?
A Uniform Commercial Code (UCC) lien is a form of notice that lenders use when securing a borrower’s loan with an asset or group of assets. This gives lenders the right to seize the listed property if the borrower defaults. UCC filings can cover specific pieces of collateral or all of a business’s assets, allowing lenders to repossess only what is needed to pay off the defaulted loan balance.
UCC filings give lenders the first-position right to collateral covered by the UCC financing statement under the Uniform Commercial Code. This set of state laws regulates U.S. commercial transactions, including financial contracts and interstate business dealings.
When a borrower takes out a secured loan or uses equipment financing, the creditor files a UCC lien to establish its right to repossess the equipment or other assets if the borrower defaults. For equipment or inventory financing, filings typically specify the collateral, while other loans may warrant a blanket filing on all of the business’s assets. If the borrower defaults, the lender can seize the listed collateral to recoup the outstanding balance.
Lenders can attach UCC liens to various business assets, including:
- Inventory
- Large equipment
- Office equipment
- Real estate
- Vehicles
- Receivables
- Commercial instruments
- Letters of credit
- Investment securities
How To Remove A UCC Lien Tied To A North Carolina MCA Agreement
To remove a UCC lien, the borrower must first pay off the outstanding loan balance. Once paid, the lender should release the collateral within one month by filing a UCC-3 Financing Statement Amendment with the secretary of state. This removes the UCC-1 filing and terminates the lien.
UCC filings typically expire after five years without express action by the lender. Many lenders wait for them to lapse naturally rather than actively terminate them. Borrowers can submit a formal request to the lender to remove the lien. The lender has 20 days to file a termination statement or send the borrower a termination statement to file. If no termination request is filed or sent by the lender after 20 days, the borrower can file a UCC-3 form requesting termination.
Dominick Dale will work diligently to remove UCC filings against your business as soon as possible. He understands how these liens can impact your ability to secure financing and other operations. Attorney Dale will fight to ensure they are lifted quickly.
Contact Merchant Cash Advance Law Firm P.C. Today
Call 347-588-5590, toll-free 855-339-6593 or use our intake form to schedule a consultation with Merchant Cash Advance Law Firm P.C.