§ 355-9-513

355.9 -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) 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, o r otherwise give value; or (b) If earlier, within twenty (20) days after the secured party receives a signed demand from a debtor. (3) In cases not governed by subsection (1) of this section, within twenty (20) days after a secured party receives a signed demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a

tion, within twenty (20) days after a secured party receives a signed 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, i ncur 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 good s 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) (a) 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

ancing statement. (4) (a) 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. (b) 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 f inancing statement to lapse. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 80, effective January 1, 2025. -- Created 2000 Ky. Acts ch. 408, sec. 104, effective July 1, 2001.