§9-1611. Notification before disposition of collateral
(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
[PL 2023, c. 669, Pt. A, §146 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(b).
The debtor and any secondary obligor waive the right to notification.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 2023, c. 669, Pt. A, §146 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(2).
Except as otherwise provided in subsection (4), a secured party that disposes of collateral under section 9‑1610 shall send to the persons specified in subsection (3) a reasonable signed notification of disposition.
[PL 2023, c. 669, Pt. A, §147 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(3).
To comply with subsection (2), the secured party shall send a signed notification of disposition to:
(a).
The debtor;
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b).
Any secondary obligor; and
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c).
If the collateral is other than consumer goods:
[PL 2023, c. 669, Pt. A, §148 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(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 appropriate 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 section 9‑1311, subsection (1).
[PL 2023, c. 669, Pt. A, §148 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(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.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(5).
A secured party complies with the requirement for notification prescribed by subsection (3), paragraph (c), subparagraph (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), paragraph (c), subparagraph (ii); and
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b).
Before the notification date, the secured party:
[PL 2023, c. 669, Pt. A, §149 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
(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.
[PL 2023, c. 669, Pt. A, §149 (AMD); PL 2023, c. 669, Pt. E, §1 (AFF).]
SECTION HISTORY
PL 1999, c. 699, §A2 (NEW). PL 1999, c. 699, §A4 (AFF). PL 2023, c. 669, Pt. A, §§146-149 (AMD). PL 2023, c. 669, Pt. E, §1 (AFF).