(a) Consumer goods. 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) Time for compliance with subsection (a). To comply with subsection (a), a secured party shall cause the secured party of record to file the termination statement:
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Terms Used In Illinois Compiled Statutes 810 ILCS 5/9-513

  • Month: means a calendar month, and the word "year" a calendar year unless otherwise expressed; and the word "year" alone, is equivalent to the expression "year of our Lord. See Illinois Compiled Statutes 5 ILCS 70/1.10
  • 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.

        (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) Other collateral. In cases not governed by subsection (a), 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) Effect of filing termination statement. Except as otherwise provided in Section 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 Section 9-510, for purposes of Sections 9-519(g), 9-522(a), and 9-523(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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