SENATE SUBSTITUTE NO. 1
FOR SENATE BILL NO. 303
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 5A OF THE DELAWARE CODE RELATING TO THE UNIFORM COMMERCIAL CODE BY AMENDING §9-404 THEREOF, RELATING TO TERMINATION STATEMENTS.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Amend §9-404, subsection (1), Title 5A, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof the following:
"(1) Whenever there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must send the debtor a termination statement, stating that the secured party no longer claims a security interest under the financing statement, which shall be identified by file number in the termination statement. A termination statement signed by a person other than the secured party of record must include, or be accompanied by, the assignment or a statement by the secured party of record that he has assigned the security interest to the signer of the termination statement. The fee for filing and indexing such an assignment or statement thereof shall be five dollars ($5.00). If the affected secured party fails to send such a termination statement within 30 days after payment in full of the secured obligation, the secured party shall pay a default fee of fifty dollars ($50.00) to the Secretary of State, and in addition shall reimburse the debtor for any loss caused to the debtor for such failure."
Approved February 4, 1974.