Section 9-513 - Termination statement. - Maryland Statutes

§ 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), a secured party shall cause the secured party of record to file the termination statement: 

(1) Within 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 

(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), 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 § 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 § 9-510, for purposes of §§ 9-519 (f), 9-522 (a), and 9-523 (b), 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. 
 

[1999, ch. 282, § 2; 2001, ch. 408, § 2.]