Lease Administrators UCC Warnings to Lessees
In California, to file a termination of a UCC statement, the cost is for 2 pages is approximately $10 and $20 for three pages or more. You can do this on line, or pay Lease Administrators $125.
Here is the California UCC page of fees:
Lease Administrators offers several services, and they send a fax
They send a fax from plus a copy of the UCC with number, names,
According to public records within The California UCC Division, the initial term of the equipment financing statement/lease lien is due to expire within 30 days (as noted on the enclosed green form). If lease termination requirements are not administered correctly and in a timely manner, an automatic renewal clause and lien continuation may be triggered. This will cause an extension of the lease, the requirement of additional payments and a delay in your receipt of clear equipment title.*
To prevent the risk and costly consequence of lease termination non-compliance, the following procedures will be executed on your behalf;
1-The secured party (or assignee) is notified by "avadavat of intent to purchase" (AIP) of your intention to terminate the equipment lease and exercise the purchase option.
2-Termination of the original filed UCC-1 statement is confirmed and copies of the UCC-3 statements are secured and provided to you ensuring proper equipment title transfer and ownership.
3-Proof of lease termination execution is registered and archived for a one year period to provide 3rd party verification for potential disputes that may arise with the secured party.
Complete the form below and mail it back in the enclosed envelope along with the required administrative fee. For further information, visit our website at www.leaseadministrators.org or call 925-658-1201.
* If the lease has already been paid off, item #2 above was never executed. Proof of legal title of an asset prevents the secured party from ever being able to require further payments, as well as allowing a "clear" sale or transfer of the asset to another party.
Complete and detach the form below, then mail it back in the enclosed envelope along with the required administrative fee
|Payable To: Lease Administrators
1250-1 Newell Avenue, #134
Walnut Creek, CA 94596
Administrative fee: $125.00
(including all necessary filing fees)
Note: Due to the time sensitive nature of legal provisions in your equipment lease and the lease termination administrative procedures that need to be executed, please respond within 5 business days of the listed expiration date as noted on the enclosed green form (there is normally a 10 day grace period included in your lease agreement). Allow 2 weeks after the listed expiration date to receive a confirmation certificate and associated documentation.
also available in pdf format at: http://leasingnews.org/PDF/LEASE%20ADMINISTRATORS.pdf
The above form was faxed 60 days after the lease was paid off by
the lessee on a five year lease. Their reaction was to pay $125
for the services. The lessee told Leasing News they received a formal
“paid out” letter plus a bill of sale signed by the lessor. They asked for their $125 back after being notified by the lessor that the UCC had expired, and as important, they had received a “bill of sale” for the equipment listed.
A telephone call to Mr. Steve Scott ( who's name is on the form) was answered by an automatic recording, saying all “ service representatives” were busy, but to leave your telephone number, name, and UCC information.
The call was never returned to Leasing News.
Customers can also go on line and complete a form. Lease Administrators offers a “free service” for when you enter into a lease they will notify you at expiration of the UCC so you may engage them for $125 to properly “terminate” the UCC filing.
In California, UCC's expire in five years. Many leasing companies provide a “bill of sale” to the lessee when the lease is complete, meaning all payments made, all taxes and late charges paid, and any “purchase option,” if applicable, has been paid in full.
In the past, it was a common practice to also provide a UCC 3 termination form signed by the creditor and assignee, if applicable. Since the advent of electronic filing, this is no longer common, even to discounters who retain the residual. There also is the fact that many leasing companies have been sold, merged, and the leases assigned elsewhere.
Leases paid off early generally get a letter and/or bill of sale, but rarely a UCC termination. The practice today is not to provide a UCC 3, and if requested by the lessee, to require the lessee to complete, send in, and pay the fee.
Lease Administrators, according to their web site, http://www.leaseadministrators.org/ , has been providing their services since 1994. The company is not listed in the Better Business Bureau.