KRS 355.9-513: 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) of this section, a secured party shall cause the

secured party of record to file the termination statement:

(a) Within one (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 twenty (20) days after the secured party receives a signed

demand from a debtor.

(3) In cases not governed by subsection (1) of this section, within twenty (20) days

after a secured party receives a signed 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 good s 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) (a) Except as otherwise provided in KRS 355.9 -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.

(b) Except as otherwise provided in KRS 355.9 -510, for purposes of KRS 355.9 -

519(7), 355.9-522(1), and 355.9 -523(3), 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 f inancing

statement to lapse.