> For clean Markdown of any page, append .md to the page URL. > For a complete documentation index, see https://docs.middesk.com/assess-risk/file-lien/llms.txt. > For AI client integration (Claude Code, Cursor, etc.), connect to the MCP server at https://docs.middesk.com/_mcp/server. # File and terminate a lien > Learn how to file UCC liens and terminate existing liens using the Middesk API. Middesk's Lien Filing service enables you to file UCC liens with state authorities and terminate existing liens programmatically. This capability is essential for lenders, financing companies, and creditors who need to secure their interests in business assets or release those interests when obligations are satisfied. Filing a UCC (Uniform Commercial Code) lien establishes a legal claim against a debtor's assets as collateral for a loan or other financial obligation. This public record: * Secures your interest in business assets * Establishes priority among creditors * Provides legal protection for your financial interests * Creates a public record of the security agreement When the debt is satisfied or the security interest is no longer needed, you can file a termination to release the lien and clear the debtor's record. ## Understand lien status Liens and terminations progress through different states during the filing process: **Lien filing statuses** | Status | Description | When it occurs | | --------- | ------------------------------------------ | ------------------------------------------------------ | | `created` | Lien request has been created | When you submit the filing request | | `pending` | Middesk is processing the filing | When Middesk begins fulfillment | | `filed` | Filing has been submitted to the state | After state submission | | `open` | Filing has been reflected in state records | After Lien Reflection confirms the filing (if enabled) | **Termination statuses** | Status | Description | When it occurs | | ----------- | ----------------------------------------- | --------------------------------- | | `created` | Termination request has been created | When you submit the termination | | `pending` | Middesk is processing the termination | When Middesk begins fulfillment | | `completed` | Termination has been filed with the state | After successful state submission | Once a termination is `completed`, the associated lien status changes to `closed`. ## How to file a lien Filing a lien is a straightforward process that involves submitting debtor and secured party information to Middesk. But you must first create the business in your Middesk account, which triggers the business verification process. #### Create a business Create the business in Middesk, if it doesn't already exist. You can do this in the [Dashboard](https://app.middesk.com/) or through the API. ```bash curl -X POST https://api-sandbox.middesk.com/v1/businesses \ -u : \ -H "Accept: application/json" \ --data '{ "name": "Example Business Inc", "addresses": [ { "address_line1": "123 Main Street", "city": "San Francisco", "state": "CA", "postal_code": "94105" } ], "tin": { "number": "123456789" } }' ``` The response includes a `business_id` that you'll use to order the liens filing: ```json { "id": "2c6bcf81-21c8-4f71-b6c0-1e738338dadf", "object": "business", "name": "Example Business Inc", "status": "pending", ... } ``` #### Prepare the lien filing data Before filing, gather the required information: * **Debtor information**, business or individual owing the debt (name, address) * **Secured party information**, your organization's details as the creditor * **Collateral description**, description of assets securing the debt * **Loan details**, principal amount and terms * **State-specific requirements**, additional fields based on filing jurisdiction #### File the lien Once the business is verified and approved in your Middesk account, submit the lien filing using the [Dashboard](https://app.middesk.com/) or a [create a lien](/api-reference/business-verification/liens/create-a-lien-for-a-business) API call. **Required parameters:** * `debtors`, array of debtor objects with name and address information. * `secured_parties`, array of creditor objects with contact details (Only required if you would like to override the default secured parties set on your account.) * `collateral`, string describing the collateral. If not provided, Middesk uses the default collateral description for your account. Maximum 10,000 characters. * `loan_principal_amount_cents`, principal amount in cents. Required for filings in Florida and Tennessee, optional elsewhere. * `state`, two-letter state code where the lien is filed. * `packet_number`, an optional filer reference for the filing. Auto-generated if not provided. Cannot contain underscores. > **Note** > > Each debtor object should include at most one address. State-specific limits apply to the number of debtors per filing. ```bash curl --X POST https://api.middesk.com/v1/businesses/{business_id}/liens \ -u : \ -H "Accept: application/json" \ --data '{ "debtors": [ { "name": "Example Business Inc", "addresses": [ { "address_line1": "123 Main Street", "city": "San Francisco", "state": "CA", "postal_code": "94105" } ] } ], "secured_parties": [ { "name": "First National Bank", "addresses": [ { "address_line1": "456 Bank Street", "city": "San Francisco", "state": "CA", "postal_code": "94104" } ], "email": "liens@firstnationalbank.com" } ], "collateral": "All inventory, equipment, and accounts receivable", "loan_principal_amount_cents": 50000000, "state": "CA" }' ``` ## How to terminate a lien When a debt is satisfied or you need to release your security interest, you can file a termination to close the lien. #### Verify lien eligibility Before terminating a lien, ensure it has one of these statuses: * `open`, the lien is active and reflected in state records * `filed`, the lien has been filed but not yet reflected * `unknown`, the lien status cannot be determined You cannot terminate liens with status `created`, `pending`, or `closed`. #### Submit the termination request Terminate a lien using the [Dashboard](https://app.middesk.com/) or a [create a termination for a lien](/api-reference/business-verification/lien-terminations/create-a-termination-for-a-lien) API call: ```bash curl POST https://api.middesk.com/v1/liens/{lien_id}/termination \ -u : \ -H "Accept: application/json" \ ``` ## State-specific requirements Different states have varying requirements for lien filings. ### Debtor limits by state | State code | Maximum debtors | | ---------- | --------------- | | OR | 20 | | MN | 25 | | OK | 8 | | GA | 8 | | NH | 100 | ### Florida documentary stamp tax Filings in Florida require `loan_principal_amount_cents`. Omitting it returns `loan_principal_amount_cents can't be blank in the following states: FL, TN`. If your Middesk account is configured as not owing Florida documentary stamp tax at filing time, submit `loan_principal_amount_cents` of 0. Middesk files the financing statement and doesn't calculate or bill documentary stamp tax. Filings in Florida also require your account's documentary stamp tax setting to be configured. If it isn't, the request returns `Lien filing is not allowed in Florida without the required settings configured`. Contact your account manager to confirm your account's configuration. ### New York entity type requirement When filing liens in New York, you must include an `entity_type` parameter with one of these values: * `CORPORATION` * `LLC` * `NON_PROFIT` * `SOLE_PROPRIETORSHIP` * `PARTNERSHIP` * `TRUST` * `AGENT` ### Tennessee no tax liability designation For filings in Tennessee, if your Middesk account is configured to file with an alternative designation for no tax liability, the submission must include `loan_principal_amount_cents` of 0. ## Understand collateral types On the returned [lien object](/reference/lien), Middesk populates `collateral_type` with one of the following values to categorize the filing: | Type | Description | | ---------------------------- | ---------------------------------------------- | | `Blanket` | All-assets lien covering all business property | | `Collateral` | Specific assets or property types | | `All Assets and Receivables` | All business assets, including receivables | | `All Receivables` | All receivables only | | `All Assets` | All business assets | | `Named Assets` | Specifically named assets | | `Unavailable` | The collateral type is not available | | `Unknown` | The collateral type cannot be determined | > **Get a demo** > > Contact your account manager or [contact sales](https://www.middesk.com/contact-sales) to inquire about access. > Learn how to file UCC liens and terminate existing liens using the Middesk API.