47-9611. Notification before disposition of collateral
408 words·~2 min read·
/az/title-47/47-9611A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. In this section, "notification date" means the earlier of the date on which:
1. A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
2. The debtor and any secondary obligor waive the right to notification.
B. Except as otherwise provided in subsection D of this section, a secured party that disposes of collateral under section 47-9610 shall send to the persons specified in subsection C of this section a reasonable authenticated notification of disposition.
C. To comply with subsection B of this section, the secured party shall send an authenticated notification of disposition to:
1. The debtor;
2. Any secondary obligor; and
3. If the collateral is other than consumer goods:
(a)Any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(b)Any other secured party or lienholder that, ten days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(i)Identified the collateral;
(ii)Was indexed under the debtor's name as of that date; and
(iii)Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and
(c)Any other secured party that, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation or treaty described in section 47-9311, subsection A.
D. Subsection B of this section does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.
E. A secured party complies with the requirement for notification prescribed by subsection C, paragraph 3, subdivision
(b)of this section if:
1. Not later than twenty days or earlier than thirty days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection C, paragraph 3, subdivision
(b)of this section; and
2. Before the notification date, the secured party:
(a)Did not receive a response to the request for information; or
(b)Received a response to the request for information and sent an authenticated notification of disposition to each secured party named in that response and whose financing statement covered the collateral.