§9-1209. Duties of secured party if account debtor has been notified of assignment
197 words·~1 min read·
/me/title-11-uniform-commercial-code/9-1209A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1). Except as otherwise provided in subsection
(3), this section applies if:
(a). There is no outstanding secured obligation; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). The secured party is not committed to make advances, incur obligations or otherwise give value. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(2). Within 20 days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under section 9‑1406, subsection
(1)or section 12‑106, subsection
(2)of an assignment to the secured party as assignee a signed record that releases the account debtor from any further obligation to the secured party.
[PL 2023, c. 669, Pt. A, §94 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(3). This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]