§12A-1-9-611. Notification before disposition of collateral.
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NOTIFICATION BEFORE DISPOSITION OF COLLATERAL
(a)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)Except as otherwise provided in subsection
(d)of this section, a secured party that disposes of collateral under Section 1-9-610 of this title shall send to the persons specified in subsection
(c)of this section a reasonable signed notification of disposition.
(c)To comply with subsection
(b)of this section, 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, 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:
(i)identified the collateral;
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, ten
(10)days before the
notification date, held a security interest in the
collateral perfected by compliance with a statute,
regulation, or treaty described in subsection
(a)of
Section 1-9-311 of this title.
(d)Subsection
(b)of this section 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)A secured party complies with the requirement for notification prescribed by subparagraph
(B)of paragraph
(3)of subsection
(c)of this section if:
(1)not later than twenty
(20)days or earlier than thirty
(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 subparagraph
(B)of paragraph
(3)of subsection
(c)of this section; 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. Added by Laws 2000, c. 371, § 118, eff. July 1, 2001. Amended by Laws 2024, c. 13, § 81, eff. Nov. 1, 2024.