                                 CODE OF VIRGINIA

TERMINATION STATEMENT (§ 8.9A-513)

a. Consumer goods. 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:

   1. 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

   2. the debtor did not authorize the filing of the initial financing statement.

b. Time for compliance with subsection (a). To comply with subsection (a), a
secured party shall cause the secured party of record to file the termination
statement:

   1. within one 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

   2. if earlier, within twenty days after the secured party receives a signed
   demand from a debtor.

c. Other collateral. In cases not governed by subsection (a), within twenty 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:

   1. 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;

   2. 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;

   3. the financing statement covers goods that were the subject of a consignment
   to the debtor but are not in the debtor&#8217;s possession; or

   4. the debtor did not authorize the filing of the initial financing statement.

d. Effect of filing termination statement. Except as otherwise provided in
&#xA7; 8.9A-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 &#xA7; 8.9A-510, for
purposes of &#xA7;&#xA7; 8.9A-519 (g), 8.9A-522 (a), and 8.9A-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.

HISTORY: 1964, c. 219, § 8.9-404; 1973, c. 509; 1975, c. 225; 1977, c. 539;
1982, c. 652; 1984, cc. 40, 771; 1988, c. 804; 1990, c. 412; 2000, c. 1007;
2024, c. 652.