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:

Terms Used In Arizona Laws 47-9513

  • Account debtor: means a person obligated on an account, chattel paper or general intangible but does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper. See Arizona Laws 47-9102
  • Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods or a lease of specific goods and license of software used in the goods. See Arizona Laws 47-9102
  • Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
  • Consignment: means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:

    (a) The merchant:

    (i) Deals in goods of that kind under a name other than the name of the person making delivery;

    (ii) Is not an auctioneer; and

    (iii) Is not generally known by its creditors to be substantially engaged in selling the goods of others;

    (b) With respect to each delivery, the aggregate value of the goods is one thousand dollars or more at the time of delivery;

    (c) The goods are not consumer goods immediately before delivery; and

    (d) The transaction does not create a security interest that secures an obligation. See Arizona Laws 47-9102

  • Consumer goods: means goods that are used or bought for use primarily for personal, family or household purposes. See Arizona Laws 47-9102
  • Debtor: means :

    (a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;

    (b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or

    (c) A consignee. See Arizona Laws 47-9102

  • Filing office: means an office designated in section 47-9501 as the place to file a financing statement. See Arizona Laws 47-9102
  • Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Arizona Laws 47-9102
  • Goods: means all things that are movable when a security interest attaches. See Arizona Laws 47-9102
  • Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Secured party: means :

    (a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

    (b) A person that holds an agricultural lien;

    (c) A consignor;

    (d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;

    (e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or

    (f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102

  • Termination statement: means an amendment of a financing statement that:

    (a) Identifies, by its file number, the initial financing statement to which it relates; and

    (b) Indicates either that it is a termination statement or that the identified financing statement is no longer effective. See Arizona Laws 47-9102

  • Transmitting utility: means a person primarily engaged in the business of:

    (a) Operating a railroad, subway, street railway or trolley bus;

    (b) Transmitting communications electrically, electromagnetically or by light;

    (c) Transmitting goods by pipeline or sewer; or

    (d) Transmitting or producing and transmitting electricity, steam, gas or water. See Arizona Laws 47-9102

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 twenty days after the secured party receives an authenticated demand from a debtor.

C. In cases not governed by subsection A of this section, within twenty 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 47-9510, 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 47-9510, for purposes of section 47-9519, subsection G, section 47-9522, subsection A and section 47-9523, subsection C, 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.

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