§ 9—611.
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/vt/9-117A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 9—611. 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 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, 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:
(i)identified the collateral;
(ii)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, 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 9—311(a) 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 in subdivision (c)(3)(B) of this section if:
(1)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 subdivision (c)(3)(B) 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 named in that response whose financing statement covered the collateral. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2025, No. 17, § 9, eff. July 1, 2025.)