(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

Terms Used In Kentucky Statutes 355.9-513

  • Month: means calendar month. See Kentucky Statutes 446.010
  • 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.

(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, or otherwise give value; or
(b) If earlier, within twenty (20) days after the secured party receives an authenticated demand from a debtor.
(3) 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.
(4) 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.