2023 New York Laws › UCC - Uniform Commercial Code › Article 9 - Secured Transactions › Part 5 - Filing › Sub Part 1 - Filing Office; Contents and Effectiveness of Financing Statement › 9-513 - Termination Statement

Section 9--513. Termination Statement.
(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:
(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  Section  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.
(e) Cooperative Interests.
(1) "Cooperative Interest Settlement" means the time and place at
which an  owner  of  a  cooperative  interest  transfers  the
cooperative  interest,  or  refinances  or  pays off the debt
secured by the cooperative interest.
(2) Upon an authenticated demand  with  sufficient  notice  by  a
debtor,  the  secured  party  shall  deliver to a cooperative
interest  settlement  a  termination  statement  or   partial
release  and any component of the cooperative record of which
it took possession, which shall be  released  to  the  debtor
upon  payment of the debt secured by the cooperative interest
and the discharge of any obligation of the secured  party  to
make  further  advances.  Unless the secured party has agreed
otherwise  or the cooperative interest settlement takes place
at the offices of the secured party, the secured party or its
agent shall be entitled to a reasonable fee for attendance at
the cooperative interest settlement.
(3) Upon payment of the debt secured by  a  cooperative  interest
other  than  at  a  cooperative  interest  settlement and the
discharge of any obligation of  the  secured  party  to  make
further  advances,  the  secured  party  shall  arrange for a
termination statement or partial release to be  filed  within
one  month  of  receipt  of  the  payment or discharge of the
obligation to make further advances, whichever is later,  and
shall  send  to  the  debtor any component of the cooperative
record of which it took possession.