§ 36-9-613. Contents and form of notification before disposition of collateral: general.

327 words·~1 min read·/sc/title-36-commercial-code/chapter-9/commercial-code-secured-transactions/36-9-613·

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

Except in a consumer-goods transaction, the following rules apply:

(1)The contents of a notification of disposition are sufficient if the notification:

(A)describes the debtor and the secured party;

(B)describes the collateral that is the subject of the intended disposition;

(C)states the method of intended disposition;

(D)states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and

(E)states the time and place of a public disposition or the time after which any other disposition is to be made.

(2)Whether the contents of a notification that lacks any of the information specified in item

(1)are nevertheless sufficient is a question of fact.

(3)The contents of a notification providing substantially the information specified in item

(1)are sufficient, even if the notification includes:

(A)information not specified by that item; or

(B)minor errors that are not seriously misleading.

(4)A particular phrasing of the notification is not required.

(5)The following form of notification and the form appearing in Section 36-9-614(3), when completed, each provides sufficient information:

'NOTIFICATION OF DISPOSITION OF COLLATERAL

To: [Name of debtor, obligor, or other person to which the notification is sent]

From: [Name, address, and telephone number of secured party]

Name of Debtor(s): [Include only if debtor(s) are not an addressee]

[For a public disposition:]

We will sell [or lease or license, as applicable] the [describe collateral] [to the highest qualified bidder] in public as follows:

Day and Date:

Time:

Place:

We will sell [or lease or license, as applicable] the [describe collateral] privately sometime after [day and date].

You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $ ]. You may request an accounting by calling us at [telephone number]'.