70A-9a-611. Notification before disposition of collateral.

402 words·~2 min read·/ut/title-70a/chapter-9a/70a-9a-611

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

Effective 5/6/2026

(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

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

(2)Except as otherwise provided in Subsection

(4), a secured party that disposes of collateral under Section 70A-9a-610 shall send to the persons specified in Subsection

(3)a reasonable signed notification of disposition.

(3)To comply with Subsection

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

(a)the debtor;

(b)any secondary obligor; and

(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 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 Subsection 70A-9a-311(1) .

(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.

(5)A secured party complies with the requirement for notification prescribed by Subsection (3)(c)(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)(c)(ii) ; and

(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.

Amended by Chapter 322 , 2026 General Session