§ 25-9-513. Termination statement. - North Carolina Statutes

§ 25‑9‑513. Termination statement.

(a)        Consumer goods. – Asecured party shall cause the secured party of record for a financing statementto file a termination statement for the financing statement if the financingstatement covers consumer goods and:

(1)        There is noobligation secured by the collateral covered by the financing statement and nocommitment to make an advance, incur an obligation, or otherwise give value; or

(2)        The debtor did notauthorize the filing of the initial financing statement.

(b)        Time for compliancewith subsection (a). – To comply with subsection (a) of this section, a securedparty shall cause the secured party of record to file the terminationstatement:

(1)        Within one monthafter there is no obligation secured by the collateral covered by the financingstatement and no commitment to make an advance, incur an obligation, orotherwise give value; or

(2)        If earlier, within20 days after the secured party receives an authenticated demand from a debtor.

(c)        Other collateral. –In cases not governed by subsection (a) of this section, within 20 days after asecured party receives an authenticated demand from a debtor, the secured partyshall cause the secured party of record for a financing statement to send tothe debtor a termination statement for the financing statement or file thetermination statement in the filing office if:

(1)        Except in the caseof a financing statement covering accounts or chattel paper that has been soldor goods that are the subject of a consignment, there is no obligation securedby the collateral covered by the financing statement and no commitment to makean advance, incur an obligation, or otherwise give value;

(2)        The financingstatement covers accounts or chattel paper that has been sold but as to which theaccount debtor or other person obligated has discharged its obligation;

(3)        The financingstatement covers goods that were the subject of a consignment to the debtor butare not in the debtor's possession; or

(4)        The debtor did notauthorize the filing of the initial financing statement.

(d)        Effect of filingtermination statement. – Except as otherwise provided in G.S. 25‑9‑510,upon the filing of a termination statement with the filing office, thefinancing statement to which the termination statement relates ceases to beeffective. Except as otherwise provided in G.S. 25‑9‑510, forpurposes of G.S. 25‑9‑519(g), 25‑9‑522(a), and 25‑9‑523(c),the filing with the filing office of a termination statement relating to afinancing statement that indicates that the debtor is a transmitting utilityalso causes the effectiveness of the financing statement to lapse. (1945,c. 182, s. 5; c. 196, s. 3; 1961, c. 574; 1965, c. 700, s. 1; 1967, c. 562, s.1; 1969, c. 1115, s. 1; 1973, c. 1316, ss. 2, 3; 1975, c. 862, s. 7; 1985, c.221; 1989, c. 523, s. 5; 1991, c. 164, s. 2; 2000‑169, s. 1.)