§ 9-209. Duties of secured party if account debtor has been notified of assignment.

130 words·~1 min read·/de/title-6/chapter-9/9-209

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Applicability of section. — Except as otherwise provided in subsection (c), this section applies if:

(1)there is no outstanding secured obligation; and

(2)the secured party is not committed to make advances, incur obligations, or otherwise give value.

(b)Duties of secured party after receiving demand from debtor. — Within 10 days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under Section 9-406(a) or 12-106(b) of an assignment to the secured party as assignee under a signed record that releases the account debtor from any further obligation to the secured party.

(c)Inapplicability to sales. — This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.