Sec. 9-611. Notification before disposition of collateral.

410 words·~2 min read·/il/chapter-810/act-5/9-611

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

(a)"Notification date." 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 a signed notification

of disposition; or

(2)the debtor and any secondary obligor waive the right to notification.

(b)Notification of disposition required. Except as otherwise provided in subsection (d), a secured party that disposes of collateral under Section 9-610 shall send to the persons specified in subsection

(c)a reasonable signed notification of disposition.

(c)Persons to be notified. To comply with subsection (b), the secured party shall send a signed 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, a signed notification of a claim of an interest in the collateral;

(B)any other secured party or lienholder that, 10 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, 10 days before the notification date, held a

security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in Section 9-311(a).

(d)Subsection

(b)inapplicable: perishable collateral; recognized market. Subsection

(b)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)Compliance with subsection (c)(3)(B). A secured party complies with the requirement for notification prescribed by subsection (c)(3)(B) if:

(1)not later than 20 days or earlier than 30 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)(3)(B); 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 a signed

notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.