Section 57537 Of Article 5. Enforcement Of Lien From California Food And Agricultural Code >> Division 20. >> Chapter 12. >> Article 5.
57537
. (a) When a lien claimant receives payment for the total
amounts secured by the lien and the lien claimant has not provided
feed for materials for a period of 30 consecutive days, the lien
claimant shall, on written demand by the debtor, send the debtor a
statement that he or she no longer claims a security interest under
the statement, which shall be identified by the date, names of
parties thereto, and file number. If the affected lienholder of
record fails to send the termination statement within 10 days after
proper demand therefor, he or she is liable to the debtor for actual
damages suffered by the debtor by reason of this failure, and, if the
failure is in bad faith, for a penalty of one hundred dollars
($100).
(b) The filing officer shall mark each termination statement with
the date and time of filing and shall index the statement under the
name of the lien debtor and under the file number of the original
lien. If the filing officer has a microfilm or other photographic
record of the lien and related filings, he or she may remove and
destroy the originals from the files at any time after receipt of the
termination statement. If the filing officer does not have the
record, he or she may remove and destroy the originals from the files
at any time after one year after receipt of the termination
statement.