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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-513. Termination statement

(a) 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:

(1) 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

(2) the debtor

did not authorize the filing of the initial financing statement.

(b) To comply

with subsection (a) of this section, a secured party shall cause the secured

party of record to file the termination statement:

(1) 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

(2) if earlier,

within 20 days after the secured party receives an authenticated demand from a

debtor.

(c) In cases not

governed by subsection (a) of this section, 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:

(1) 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;

(2) 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;

(3) the

financing statement covers goods that were the subject of a consignment to the

debtor but are not in the debtor's possession; or

(4) the debtor

did not authorize the filing of the initial financing statement.

(d) Except as

otherwise provided in section 9-510 of this title, 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 9-510 of this title, for purposes of subsections 9-519(g),

9-522(a), and 9-523(c) of this title, 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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July

1, 2001; amended 2001, No. 46, § 6.)