§9-1611. Notification before disposition of collateral

589 words·~3 min read·/me/title-11-uniform-commercial-code/9-1611

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

(1). In this section, "notification date" means the earlier of the date on which:

(a). A secured party sends to the debtor and any secondary obligor a signed notification of disposition; or [PL 2023, c. 669, Pt. A, §146 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(b). The debtor and any secondary obligor waive the right to notification. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]

[PL 2023, c. 669, Pt. A, §146 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(2). Except as otherwise provided in subsection

(4), a secured party that disposes of collateral under section 9‑1610 shall send to the persons specified in subsection

(3)a reasonable signed notification of disposition.

[PL 2023, c. 669, Pt. A, §147 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(3). To comply with subsection

(2), the secured party shall send a signed notification of disposition to:

(a). The debtor; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]

(b). Any secondary obligor; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]

(c). If the collateral is other than consumer goods:

(i)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;

(ii)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:

(A)Identified the collateral;

(B)Was indexed under the debtor's name as of that date; and

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

(iii)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 9‑1311, subsection (1). [PL 2023, c. 669, Pt. A, §148 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

[PL 2023, c. 669, Pt. A, §148 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

(4). 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.

[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]

(5). A secured party complies with the requirement for notification prescribed by subsection (3), paragraph

(c), subparagraph

(ii)if:

(a). 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 (3), paragraph

(c), subparagraph (ii); and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]

(b). Before the notification date, the secured party:

(i)Did not receive a response to the request for information; or

(ii)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. [PL 2023, c. 669, Pt. A, §149 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]

[PL 2023, c. 669, Pt. A, §149 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]