554.9611 Notification before disposition of collateral.

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

1. Notification date. In this section, “notification date” means the earlier of the dates on which:

a. a secured party sends to the debtor and any secondary obligor a signed notification of disposition; or

b. the debtor and any secondary obligor waive the right to notification.

2. Notification of disposition required. Except as otherwise provided in subsection 4, a secured party that disposes of collateral under section 554.9610 shall send to the persons specified in subsection 3 a reasonable signed notification of disposition.

3. Persons to be notified. To comply with subsection 2, the secured party shall send a signed notification of disposition to:

a. the debtor;

b. any secondary obligor; and

c. if the collateral is other than consumer goods:

(1)any other person from which the secured party has received, before the notification date, a signed notification of a claim of an interest in the collateral;

(2)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:

(a)identified the collateral;

(b)was indexed under the debtor’s name as of that date; and

(c)was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and

(3)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 554.9311, subsection 1.

4. Subsection 2 inapplicable — perishable collateral — recognized market. Subsection 2 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.

5. Compliance with subsection 3, paragraph “c”, subparagraph (2). A secured party complies with the requirement for notification prescribed by subsection 3, paragraph “c”, subparagraph (2), if:

a. 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 3, paragraph “c”, subparagraph (2); and

b. before the notification date, the secured party:

(1)did not receive a response to the request for information; or

(2)received a response to the request for information and sent a signed notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.

2000 Acts, ch 1149, §109, 187; 2024 Acts, ch 1023, §87 – 89

Referred to in §554.9602, 554.9624