LD 2245
pg. 396
Page 395 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 397 of 493
Download Bill Text
LR 1087
Item 1

 
the pre1972 burden on foreclosing secured parties but certainly
is more modest than that faced by a new secured lender.

 
To determine who is entitled to notification, the foreclosing
secured party must determine the proper office for filing a
financing statement as of a particular date, measured by
reference to the "notification date," as defined in subsection
(a) [Maine cite subsection (1)]. This determination requires
reference to the choice-of-law provisions of Part 3. The secured
party must ascertain whether any financing statements covering
the collateral and indexed under the debtor's name, as the name
existed as of that date, in fact were filed in that office. The
foreclosing secured party generally need not notify secured
parties whose effective financing statements have become more
difficult to locate because of changes in the location of the
debtor, proceeds rules, or changes in the debtor's name.

 
Under subsection (c)(3)(C) [Maine cite subsection (3),
paragraph (c), subparagraph (iii)], the secured party also must
notify a secured party who has perfected a security interest by
complying with a statute or treaty described in Section 9-311(a)
[Maine cite section 9-1311, subsection (1)], such as a
certificate-of-title statute.

 
Subsection (e) [Maine cite subsection (5)] provides a "safe
harbor" that takes into account the delays that may be attendant
to receiving information from the public filing offices. It
provides, generally, that the secured party will be deemed to
have satisfied its notification duty under subsection (c)(3)(B)
[Maine cite subsection (3), paragraph (c), subparagraph (ii)] if
it requests a search from the proper office at least 20 but not
more than 30 days before sending notification to the debtor and
if it also sends a notification to all secured parties (and other
lienholders) reflected on the search report. The secured party's
duty under subsection (c)(3)(B) [Maine cite subsection (3),
paragraph (c), subparagraph (ii)] also will be satisfied if the
secured party requests but does not receive a search report
before the notification is sent to the debtor. Thus, if
subsection (e) [Maine cite subsection (5)] applies, a secured
party who is entitled to notification under subsection (c)(3)(B)
[Maine cite subsection (3), paragraph (c), subparagraph (ii)] has
no remedy against a foreclosing secured party who does not send
the notification. The foreclosing secured party has complied
with the notification requirement. Subsection (e) [Maine cite
subsection (5)] has no effect on the requirements of the other
paragraphs of subsection (c) [Maine cite subsection (3)]. For
example, if the foreclosing secured party received a notification
from the holder of a conflicting security interest in accordance
with subsection (c)(3)(A) [Maine cite subsection (3), paragraph
(c), subparagraph
(i)] but failed to send to the holder a


Page 395 of 493 Top of Page Page 397 of 493