Solar lien disposition on vacant lot

[Tim Silvers]

House was severely fire damaged and subsequently deemed uninhabitable and demo'd by the city along with the solar panels. In addition, the lessee of record is deceased. Death certificate was already sent some time back to the solar lease company. The surviving spouse (not on the lien) tried to file a claim for the fire, but was denied and settlement (complex situation). 

A UCC-1 lien still show in county records in the name of the leasing company. 

What is the disposition of the lien in this instance?

[Tom Gimer]

The fact pattern states the equipment was leased (owned by the solar company, not the property owner). That’s crucial. 

The solar equipment destroyed, there is nothing for the lender to remove. The lease is now unsecured debt… not a junior lien on the land.