30-9-533. (Effective July 1, 2001) 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 1 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 30-9-530, upon the filing of a termination statement with the filing office, the financing statement to which the termination statement relates ceases to be effective.

     History: En. Sec. 83, Ch. 305, L. 1999.