1998 Minnesota Statutes

     336A.07 Termination statements. 

    Subdivision 1.    Requirement.  (a) If required in an 
 effective financing statement, a secured party shall within 30 
 days file a lien termination statement and termination statement 
 for the effective financing statement when:  

    (1) an outstanding secured obligation does not exist; and 

    (2) a written commitment to make advances, incur 
 obligations, or otherwise give value does not exist.  

    (b) A lienholder shall file a termination statement with 
 respect to a lien notice within 30 days after an outstanding 
 lien notice obligation no longer exists.  

    Subd. 2.    Contents.  A lien termination statement and 
 termination statement for the effective financing statement must:

    (1) state the file number of the effective financing 
 statement or lien notice; 

    (2) state the date on which the lien or security interest 
 was satisfied; 

    (3) state that the secured party does not claim a security 
 interest under the effective financing statement or that the 
 lienholder does not claim a lien under the lien notice; and 

    (4) be signed by the secured party or lienholder. 

    Subd. 3.    Filing.  A termination statement for an 
 effective financing statement must be filed by the secured party 
 in the filing office where the original effective financing 
 statement is filed.  A termination statement for the lien notice 
 must be filed by the lienholder in the same manner required for 
 filing the lien notice.  

    Subd. 4.    Failure to file.  If the secured party or 
 lienholder fails to file a termination statement as required by 
 subdivision 1, or within ten days after a debtor serves a 
 written demand for the termination statement if the conditions 
 in subdivision 1 exist, the secured party or lienholder is 
 liable to the debtor for $100 plus any loss caused to the debtor 
 by failing to file the termination statement.  For the second 
 and each subsequent time a secured party or lienholder is found 
 liable to a debtor under this subdivision in any one calendar 
 year, the secured party or lienholder is liable to the debtor 
 for $250 plus any loss caused to the debtor. 

    Subd. 5.    Filing procedures.  (a) When a termination 
 statement is filed, each filing office must delete the 
 information from the active files as prescribed by the secretary 
 of state.  

    (b) If the termination statement is filed in duplicate, the 
 filing office shall return one copy of the termination 
 statement, stamped to show the time of receipt, to the secured 
 party or lienholder.  

    HIST: 1992 c 525 s 8