UCC-3 FINANCING STATEMENT AMENDMENT

CONTINUATION STATEMENT

(National Form - Uniform Commercial Code)

CRITICAL TIMING REQUIREMENTS

THE 5-YEAR RULE AND 6-MONTH FILING WINDOW

TIMELINE FOR STANDARD UCC-1 FILING:

Year 0 Year 4.5 Year 5
| | |
[INITIAL FILING] [WINDOW OPENS] [LAPSE DATE]
|<-- 6 MONTHS -->|
MUST FILE CONTINUATION
IN THIS WINDOW
FILING DEADLINES:

WARNING NOTICES

CONSEQUENCES OF IMPROPER TIMING:

☐ Filed Too Early (more than 6 months before lapse): Continuation is INEFFECTIVE. You must file again within the proper window.

☐ Filed Too Late (on or after lapse date): Financing statement has ALREADY LAPSED. You must file a NEW UCC-1, and you LOSE your original priority date.

☐ Not Filed at All: Financing statement lapses and security interest becomes UNPERFECTED. A bankruptcy trustee can avoid the security interest under 11 U.S.C. § 544 (strong-arm powers).

FILING OFFICE INFORMATION

ITEM 1a. INITIAL FINANCING STATEMENT FILE NUMBER

ITEM 1b. DEBTOR NAME (First Debtor on Initial Financing Statement)

Organization Debtor:

OR Individual Debtor:

ITEM 2. AMENDMENT TYPE

Check Box to Continue Financing Statement:

☐ CONTINUATION - This Financing Statement Amendment is a Continuation Statement filed to continue the effectiveness of the above-identified initial financing statement with respect to the security interest(s) of the authorizing Secured Party.

ITEM 3. SECURED PARTY OF RECORD

Current Secured Party of Record:

Additional Secured Parties of Record (if any):

CONTINUATION DETAILS

Continuation Period

Upon proper filing, this continuation statement extends the effectiveness of the initial financing statement for an additional FIVE (5) YEARS from the date the financing statement would have lapsed.

Transaction Information (Optional)

AUTHORIZATION CERTIFICATION

Authorization to File Continuation Statement

The undersigned certifies that:

☐ The undersigned is the secured party of record or is authorized by the secured party of record to file this continuation statement.

☐ The secured party of record has authorized this continuation statement in an authenticated record.

☐ The undersigned has reviewed the initial financing statement file number and confirms it is correct.

☐ This continuation statement is being filed within the 6-month window before the lapse date (not more than 6 months before and not on or after the lapse date).

FILING PARTY INFORMATION

SIGNATURE

The undersigned, being duly authorized, hereby files this Continuation Statement.

FILING OFFICE USE ONLY

SPECIAL FILING TYPES

Duration Exceptions

Multiple Jurisdictions

If the original financing statement was filed in multiple jurisdictions (e.g., Secretary of State AND County Recorder for fixtures), file continuation statements in ALL jurisdictions where the original was filed.

CONTINUATION FILING CHECKLIST

Before Filing:

☐ Verify correct initial financing statement file number
☐ Confirm debtor name matches initial financing statement exactly
☐ Calculate lapse date (5 years from initial filing or last continuation)
☐ Verify filing is within 6-month window (not early, not late)
☐ Confirm authorization from secured party of record
☐ Verify filing office and fee amount

Timing Verification:

After Filing:

☐ Receive filing acknowledgment with new file number
☐ Verify continuation appears in UCC search
☐ Update records with new lapse date (5 years from previous lapse date)
☐ Calendar next continuation deadline (6 months before new lapse date)
☐ Provide copy to debtor (if required by loan documents)

CALENDAR/TICKLER SYSTEM

Set These Reminders:

UCC ARTICLE 9 CITATIONS

Continuation Statement Provisions

• § 9-515(a): Financing statement effectiveness period (5 years)
• § 9-515(b): Transmitting utility exception (no lapse)
• § 9-515(c): Effectiveness of continuation statement
• § 9-515(d): When continuation statement may be filed (6-month window)
• § 9-515(e): Effect of proper continuation (extends 5 more years from original lapse)
• § 9-515(f): Public-finance and manufactured-home transactions (30 years)
• § 9-515(g): Continuation statements for long-term filings

Related Provisions

• § 9-509(d)(1): Secured party of record may file continuation
• § 9-510: Effectiveness of filed record
• § 9-512: Amendment of financing statement
• § 9-516: What constitutes filing; effectiveness of filing
• § 9-521: Uniform form of written financing statement and amendment

Consequences of Lapse

• § 9-515(c): Upon lapse, financing statement ceases to be effective
• § 9-317: Unperfected security interest subordinate to lien creditors
• 11 U.S.C. § 544: Bankruptcy trustee's strong-arm powers
• § 9-322: Priority among conflicting security interests

CONSEQUENCES OF FAILURE TO CONTINUE

If Financing Statement Lapses:

1. Security Interest Becomes Unperfected
   - You lose perfected status immediately upon lapse
   - Other creditors may gain priority

2. Bankruptcy Vulnerability
   - Bankruptcy trustee can avoid unperfected security interest under 11 U.S.C. § 544
   - Secured creditor becomes unsecured creditor

3. Priority Loss
   - If you file a new UCC-1 after lapse, your priority date is the NEW filing date
   - Intervening filings by other creditors will have priority

4. Remediation
   - Must file entirely NEW UCC-1 financing statement
   - New priority date
   - New 5-year period
   - May need to update security agreement

SAMPLE CONTINUATION TIMELINE

Example: Initial Filing January 15, 2021

MULTIPLE CONTINUATION CYCLES

There is no limit to the number of times a financing statement may be continued. As long as proper continuation statements are timely filed, the financing statement remains effective indefinitely.

This template follows the national UCC-3 form adopted by the International Association of Commercial Administrators (IACA). VERIFY the lapse date and filing window carefully before filing.