Enrolled Copy S.B. 43
1 COMMERCIAL FILING AMENDMENTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Curtis S. Bramble House Sponsor: A. Cory Maloy
2
3 LONG TITLE
4 General Description:
5 This bill requires a filing office to send notice to a secured party of record if a debtor files a
6 termination statement terminating a financing statement.
7 Highlighted Provisions:
8 This bill:
9 ▸ requires a filing office to send notice to a secured party of record if a debtor files a
10 termination statement terminating a financing statement.
11 Money Appropriated in this Bill:
12 None
13 Other Special Clauses:
14 None
15 Utah Code Sections Affected:
16 AMENDS:
17 70A-9a-513, as enacted by Laws of Utah 2000, Chapter 252
18
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 70A-9a-513 is amended to read:
21 70A-9a-513 . Termination statement.
22 (1) A secured party shall cause the secured party of record for a financing statement to file a
23 termination statement for the financing statement if the financing statement covers
24 consumer goods and:
25 (a) there is no obligation secured by the collateral covered by the financing statement
26 and no commitment to make an advance, incur an obligation, or otherwise give value;
27 or
28 (b) the debtor did not authorize the filing of the initial financing statement.
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29 (2) To comply with Subsection (1), a secured party shall cause the secured party of record
30 to file the termination statement:
31 (a) within one month after there is no obligation secured by the collateral covered by the
32 financing statement and no commitment to make an advance, incur an obligation, or
33 otherwise give value; or
34 (b) if earlier, within 20 days after the secured party receives an authenticated demand
35 from a debtor.
36 (3) In cases not governed by Subsection (1), within 20 days after a secured party receives
37 an authenticated demand from a debtor, the secured party shall cause the secured party
38 of record for a financing statement to send to the debtor a termination statement for the
39 financing statement or file the termination statement in the filing office if:
40 (a) except in the case of a financing statement covering accounts or chattel paper that has
41 been sold or goods that are the subject of a consignment, there is no obligation
42 secured by the collateral covered by the financing statement and no commitment to
43 make an advance, incur an obligation, or otherwise give value;
44 (b) the financing statement covers accounts or chattel paper that has been sold but as to
45 which the account debtor or other person obligated has discharged its obligation;
46 (c) the financing statement covers goods that were the subject of a consignment to the
47 debtor but are not in the debtor's possession; or
48 (d) the debtor did not authorize the filing of the initial financing statement.
49 (4) Except as otherwise provided in Section 70A-9a-510, upon the filing of a termination
50 statement with the filing office, the financing statement to which the termination
51 statement relates ceases to be effective. Except as otherwise provided in Section
52 70A-9a-510, for purposes of Subsections 70A-9a-519(7), 70A-9a-522(1), and
53 70A-9a-525(3), the filing with the filing office of a termination statement relating to a
54 financing statement that indicates that the debtor is a transmitting utility also causes the
55 effectiveness of the financing statement to lapse.
56 (5) (a) If a debtor files a termination statement, the filing office shall send to the secured
57 party of record for the financing statement to which the termination statement relates,
58 a notice stating that the termination statement has been filed.
59 (b) The filing office shall send notice described in Subsection (5)(a):
60 (i) (A) by mail to the address provided for the secured party of record in the
61 financing statement; or
62 (B) by electronic mail to the electronic mail address provided by the secured party
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 Enrolled Copy S.B. 43
63 of record, if any; and
64 (ii) no later than 14 days after the day on which the termination statement is filed.
65 Section 2. Effective date.
66 This bill takes effect on May 1, 2024.
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Statutes affected:
Introduced:
Enrolled: