§490:9-404 Termination statement. (1) If a financing statement covering consumer goods is filed on or after July 1, 1978, then within one month or within ten days following written demand by the debtor after there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must file with each filing officer with whom the financing statement was filed, a termination statement to the effect that the secured party no longer claims a security interest under the financing statement, which shall be identified by book and page or document number. In other cases whenever there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must on written demand by the debtor send the debtor, for each filing officer with whom the financing statement was filed, a termination statement to the effect that the secured party no longer claims a security interest under the financing statement, which shall be identified by book and page or document number. A termination statement signed by a person other than the secured party of record must be accompanied by a separate written statement of assignment signed by the secured party of record and complying with section 490:9-405(2), including payment of the required fee. If the affected secured party fails to file such a termination statement as required by this subsection, or to send such a termination statement within ten days after proper demand therefor the affected secured party shall be liable to the debtor for $100, and in addition for any loss caused to the debtor by such failure.

(2) The filing officer, on presentation of such a termination statement, must record and index it in the manner provided in chapter 502.

(3) Unless otherwise provided by rules established by the department of land and natural resources, pursuant to chapter 91, the fee for filing and indexing a termination statement shall be $10. [L 1965, c 208, §9-404; am L 1966, c 18, §2(f), (g); am L 1967, c 79, §1(d); HRS §490:9-404; am L 1978, c 155, §1(27); am L 1989, c 47, §4]