Colorado § 4-9.5-107 - Termination statement.

§ 4-9.5-107. Termination statement.

(1) The secured party identified in an effective financing statement may at any time, and without regard to whether there is any outstanding secured obligation or commitment to make advances, incur obligations, or otherwise give value, file with the central filing officer a termination statement with respect to such effective financing statement pursuant to this section and provide notice to the debtor of such filing.

(1.3) (a) Unless the debtor otherwise requests, whenever there is no outstanding secured obligation and no commitment to make advances, incur obligations, or otherwise give value, the secured party identified in an effective financing statement relating to such obligation or commitment shall, within thirty days, terminate such effective financing statement by filing with the central filing officer either:

(I) A termination statement pursuant to this section; or

(II) A termination statement pursuant to article 9 of this title.

(b) If a termination statement is filed pursuant to either subparagraph (I) or (II) of paragraph (a) of this subsection (1.3), the secured party shall provide notice to the debtor of such filing. If the secured party fails to file a required termination statement within the thirty-day period, the secured party shall be liable to the debtor for one thousand dollars, and, in addition, for any loss caused to the debtor by such failure.

(1.5) A termination statement filed pursuant to either subsection (1) or subparagraph (I) of paragraph (a) of subsection (1.3) of this section does not terminate or otherwise impair the perfection of any security interest perfected by the effective financing statement for purposes of article 9 of this title.

(2) (a) The termination statement shall:

(I) Be signed, authorized, or otherwise authenticated by the secured party, and if such notice is filed by electronic transmission it shall be signed electronically, pursuant to section 24-71-101, C.R.S.;

(II) Identify the effective financing statement, the effectiveness of which is to be terminated, by file number, filing office where originally filed, and date filed; and

(III) State that the effective financing statement is to be removed from the master list.

(b) The effectiveness of a terminated effective financing statement shall cease as of the date and hour of filing the termination statement by the central filing officer.

Source: L. 88: Entire article added, p. 331, § 1, effective May 29. L. 97: (2) amended, p. 551, § 10, effective April 24. L. 99: (1) and (2)(b) amended, p. 749, § 17, effective January 1, 2000. L. 2001: (1) and (2)(a)(I) amended, p. 1430, § 9, effective July 1. L. 2004: (2)(a)(I) amended, p. 1172, § 3, effective July 1. L. 2006: (1) and (2) amended and (1.3) and (1.5) added, p. 1150, § 7, effective (see editor's note). L. 2008: (1.5) amended, p. 268, § 7, effective May 29, 2012.

Editor's note: (1) Section 12 of chapter 249, Session Laws of Colorado 2006, provides that the act amending subsections (1) and (2) and enacting subsections (1.3) and (1.5) is effective ninety days following certification in writing by the secretary of state to the revisor of statutes that approval of changes to the central filing system enacted by the act has been obtained from the United States department of agriculture, and the secretary of state has implemented the necessary computer system to publish and distribute the master list electronically and is able to do so. The revisor of statutes received certification from the secretary of state on February 29, 2012.

(2) Section 9 of chapter 84, Session Laws of Colorado 2008, provides that the act amending subsection (1.5) is effective simultaneously with Senate Bill 06-188. For further explanation, see section 12 of chapter 249, Session Laws of Colorado 2006. The revisor of statutes received certification from the secretary of state, as specified in said chapter 249, on February 29, 2012.