Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 43 (2024GS)

Sponsor

Sen. Bramble, C.

Final action

Governor Signed 3/13/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires a filing office to send notice to a secured party of record if a debtor files a termination statement terminating a financing statement.

Every vote on this bill

Bill text

COMMERCIAL FILING AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Curtis S. Bramble
House Sponsor: 
A. Cory Maloy
LONG TITLE
Committee Note:
The Business and Labor Interim Committee recommended this bill.
Legislative Vote: 9 voting for 2 voting against 10 absent
General Description:
This bill requires a filing office to send notice to a secured party of record if a debtor
files a termination statement terminating a financing statement.
Highlighted Provisions:
This bill:
▸ requires a filing office to send notice to a secured party of record if a debtor files a
termination statement terminating a financing statement.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
70A-9a-513
, as enacted by Laws of Utah 2000, Chapter 252
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
70A-9a-513
 is amended to read:
70A-9a-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), a secured party shall cause the secured party of
record to file the termination statement:
(a) 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
(b) if earlier, within 20 days after the secured party receives an authenticated demand
from a debtor.
(3) In cases not governed by Subsection (1), within 20 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:
(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 goods 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) Except as otherwise provided in Section 
70A-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 Section 
70A-9a-510
,
for purposes of Subsections 
70A-9a-519
(7), 
70A-9a-522
(1), and 
70A-9a-525
(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 financing statement to
lapse.
(5) (a) If a debtor files a termination statement, the filing office shall send to the
secured party of record for the financing statement to which the termination statement relates, a
notice stating that the termination statement has been filed.
(b) The filing office shall send notice described in Subsection (5)(a):
(i) (A) by mail to the address provided for the secured party of record in the financing
statement; or
(B) by electronic mail to the electronic mail address provided by the secured party of
record, if any; and
(ii) no later than 14 days after the day on which the termination statement is filed.
Section 2. 
Effective date.
This bill takes effect on May 1, 2024.