70A-9a-513 - Termination statement.
70A-9a-513. Termination statement.
(1) A secured party shall cause the secured party of record for a financing statement tofile a termination statement for the financing statement if the financing statement covers consumergoods and:
(a) there is no obligation secured by the collateral covered by the financing statement andno commitment to make an advance, incur an obligation, or otherwise give value; or
(b) the debtor did not authorize the filing of the initial financing statement.
(2) To comply with Subsection (1), a secured party shall cause the secured party ofrecord to file the termination statement:
(a) within one month after there is no obligation secured by the collateral covered by thefinancing statement and no commitment to make an advance, incur an obligation, or otherwisegive value; or
(b) if earlier, within 20 days after the secured party receives an authenticated demandfrom a debtor.
(3) In cases not governed by Subsection (1), within 20 days after a secured party receivesan authenticated demand from a debtor, the secured party shall cause the secured party of recordfor a financing statement to send to the debtor a termination statement for the financing statementor file the termination statement in the filing office if:
(a) except in the case of a financing statement covering accounts or chattel paper that hasbeen sold or goods that are the subject of a consignment, there is no obligation secured by thecollateral covered by the financing statement and no commitment to make an advance, incur anobligation, or otherwise give value;
(b) the financing statement covers accounts or chattel paper that has been sold but as towhich the account debtor or other person obligated has discharged its obligation;
(c) the financing statement covers goods that were the subject of a consignment to thedebtor but are not in the debtor's possession; or
(d) the debtor did not authorize the filing of the initial financing statement.
(4) Except as otherwise provided in Section 70A-9a-510, upon the filing of a terminationstatement with the filing office, the financing statement to which the termination statement relatesceases to be effective. Except as otherwise provided in Section 70A-9a-510, for purposes ofSubsections 70A-9a-519(7), 70A-9a-522(1), and 70A-9a-525(3), the filing with the filing officeof a termination statement relating to a financing statement that indicates that the debtor is atransmitting utility also causes the effectiveness of the financing statement to lapse.
Enacted by Chapter 252, 2000 General Session