Once a secured consumer debt is paid,the secured party must file a termination statement.

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According to the Uniform Commercial Code (UCC), once a secured consumer debt is paid, the secured party must file a termination statement to release their security interest in the property or collateral. This notifies other potential creditors that the property is no longer encumbered and can be used as collateral for new loans or lines of credit. Failure to file a termination statement could potentially cause problems or delays for the debtor in securing future credit, as the property could still appear to be encumbered.

Once a Secured Consumer Debt Is Paid,the Secured Party Must