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 paragraph (1) are nevertheless sufficient is a question of fact.
(3) The contents of a notification providing substantially the information specified in paragraph (1) are sufficient, even if the notification includes:
(A) information not specified by that paragraph; 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 7-9A-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:
For a private disposition:
We will sell or lease or license, as applicable, the ________ (describe collateral) privately some time 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).
[End of Form]
Last modified: May 3, 2021