In 2011, Capaha Bank loaned Jamie $5,000 for a car, and took a security interest in Jamie’s commercial-size washer and dryer set. Jamie runs an at-home laundry service for her neighborhood.  Capaha Bank properly filed a UCC-1 to perfect this security interest.

It is now October 2012 and Jamie has paid off the $5,000 loan. She wants to use the washer and dryer as collateral to obtain a $2,000 loan from Grant Bank.  Which of the following is true regarding Capaha Bank’s obligation to file a termination statement as to its security interest in the washer and dryer?

1. Capaha Bank must file a termination statement immediately.

2. Capaha Bank must file a termination statement, but only within 20 days after demand is made by Jamie.

3. Capaha Bank must file a termination statement, but only within 45 days after demand is made by Jamie.

4. Capaha Bank does not have to file a termination statement.