104.9513 - Termination statement.

104.9513  Termination statement.

      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

      (b) The debtor did not authorize the filing of the initial financing statement.

      2.  To comply with subsection 1, a secured party shall cause the secured party of record to file the termination statement:

      (a) 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

      (b) If earlier, within 20 days after the secured party receives an authenticated demand from a debtor.

      3.  In cases not governed by subsection 1, 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:

      (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 NRS 104.9510, upon the filing of a termination statement with the filing office:

      (a) The financing statement to which the termination statement relates ceases to be effective.

      (b) For the purposes of subsection 7 of NRS 104.9519, subsection 1 of NRS 104.9522 and subsection 3 of NRS 104.9523, a financing statement that indicates that the debtor is a transmitting utility causes the effectiveness of the financing statement to lapse.

      (Added to NRS by 1999, 333; A 2001, 729)