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355.9-513 Termination statement.
(1)
(2)
(3)
(4)
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.
To comply with subsection (1) of this section, a secured party shall cause the
secured party of record to file the termination statement:
(a) Within one (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 twenty (20) days after the secured party receives an
authenticated demand from a debtor.
In cases not governed by subsection (1) of this section, within twenty (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.
Except as otherwise provided in KRS 355.9-510, 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 KRS
355.9-510, for purposes of KRS 355.9-519(7), 355.9-522(1), and 355.9-523(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.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 104, effective July 1, 2001.
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