Section 28:9-404 - Termination statement

Termination statement

(1) If a financing statement covering consumer goods is filed on or after the effective date of this act, then within one month or within ten days following written demand by the debtor after there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must file with each filing officer with whom the financing statement was filed, a termination statement to the effect that he no longer claims a security interest under the financing statement, which shall be identified by file number. In other cases whenever there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must on written demand by the debtor send the debtor, for each filing officer with whom the financing statement was filed, a termination statement to the effect that he no longer claims a security interest under the financing statement, which shall be identified by file number. A termination statement signed by a person other than the secured party of record must be accompanied by a separate written statement of assignment signed by the secured party of record complying with section 28:9-405 (2), including payment of the required fee. If the affected secured party fails to file such a termination statement as required by this subsection, or to send such a termination statement within ten days after proper demand therefor he shall be liable to the debtor for one hundred dollars, and in addition for any loss caused to the debtor by such failure.

(2) On presentation to the filing office of such a termination statement he must note it in the index. If he has received the termination statement in duplicate, he shall return one copy of the termination statement to the secured party stamped to show the time of receipt thereof. If the filing officer has a microfilm or other photographic record of the financing statement, and of any related continuation statement, statement of assignment and statement of release, he may remove the originals from the files at any time after receipt of the termination statement, or if he has no such record, he may remove them from the files at any time after one year after receipt of the termination statement.

(3) The uniform fee for filing and indexing a termination statement including sending or delivering the financing statement shall be $2.00.

CREDIT(S)

(Dec. 30, 1963, 77 Stat. 764, Pub. L. 88-243, § 1; Mar. 16, 1982, D.C. Law 4-85, § 32, 29 DCR 309.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications
1981 Ed., § 28:9-404.
1973 Ed., § 28:9-404.
Legislative History of Laws
For legislative history of D.C. Law 4-85, see Historical and Statutory Notes following § 28:9-102.
For Law 13-201, see notes following § 28:9-101.
References in Text
The “effective date of this act”, referred to in the first sentence of subsection (1), is set forth in § 28:11-101.

Current through September 13, 2012