70A-9a-513. Termination statement.
(1) A secured party shall cause the secured party of record for a financing statement to
file a termination statement for the financing statement if the financing statement covers consumer
goods and:
(a) there is no obligation secured by the collateral covered by the financing statement and
no 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 of
record to file the termination statement:
(a) within one month after there is no obligation secured by the collateral covered by the
financing statement and no commitment to make an advance, incur an obligation, or otherwise
give value; or
(b) if earlier, within 20 days after the secured party receives an authenticated demand
from a debtor.
(3) In cases not governed by Subsection (1), within 20 days after a secured party receives
an authenticated demand from a debtor, the secured party shall cause the secured party of record
for a financing statement to send to the debtor a termination statement for the financing statement
or file the termination statement in the filing office if:
(a) except in the case of a financing statement covering accounts or chattel paper that has
been sold or goods that are the subject of a consignment, there is no obligation secured by the
collateral covered by the financing statement and no commitment to make an advance, incur an
obligation, or otherwise give value;
(b) the financing statement covers accounts or chattel paper that has been sold but as to
which 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 the
debtor 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 termination
statement with the filing office, the financing statement to which the termination statement relates
ceases to be effective. Except as otherwise provided in Section 70A-9a-510, for purposes of
Subsections 70A-9a-519(7), 70A-9a-522(1), and 70A-9a-525(3), the filing with the filing office
of a termination statement relating to a financing statement that indicates that the debtor is a
transmitting utility also causes the effectiveness of the financing statement to lapse.
Enacted by Chapter 252, 2000 General Session
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