(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:
There is no obligation secured by the collateral covered by the financing statementand no commitment to make an advance, incur an obligation, or otherwise give value; or
The debtor did not authorize the filing of the initial financing statement.
(b) To comply with subsection (a) of this section, a secured party shall cause the secured party of record to file the termination statement:
Within one month after there is no obligation secured by the collateral covered by thefinancing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
If earlier, within twenty days after the secured party receives an authenticated demand from a debtor.
(c) In cases not governed by subsection (a) of this section, within twenty 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:
Except in the case of a financing statement covering accounts or chattel paper thathas 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;
The financing statement covers accounts or chattel paper that has been sold but as towhich the account debtor or other person obligated has discharged its obligation;
The financing statement covers goods that were the subject of a consignment to thedebtor but are not in the debtor's possession; or
The debtor did not authorize the filing of the initial financing statement.
(d) Except as otherwise provided in section 4-9-510, 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 4-9-510, for purposes of sections 4-9-519 (g), 4-9-522 (a), and 4-9-523 (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.
Source: L. 2001: Entire article R&RE, p. 1385, § 1, effective July 1.
Editor's note: (1) This section is similar to former § 4-9-404 as it existed prior to 2001.
(2) Colorado legislative change: Colorado added the last sentence of subsection (d).