UCC3 is filed in the event of what?

• A. Change in leased equipment or at the termination of the lease
• B. Initial financing statement
• C. Not required for leases
• D. A report for insurance

Answer: (A)

UCC3 is the form used to amend or terminate a previously filed UCC financing statement. It is filed when the collateral changes, such as a change in what equipment is pledged, or when a lease ends and the secured party’s interest in the collateral is released or terminated. This keeps the public record accurate about what is actually collateral securing the loan or lease.

It’s helpful to contrast it with an initial financing statement, which is filed to create and perfect a security interest in the first place. UCC3 isn’t for starting the financing statement; it’s for updating or ending it. It isn’t used for insurance reports either.