47-9611. 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 an authenticated 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 47-9610 shall send to the persons specified in subsection C of this section a reasonable authenticated notification of disposition.
C. To comply with subsection B of this section, the secured party shall send an authenticated 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, an authenticated notification of a claim of an interest in the collateral;
(b) Any other secured party or lienholder that, ten 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, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation or treaty described in section 47-9311, subsection A.
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 by subsection C, paragraph 3, subdivision (b) of this section if:
1. Not later than twenty days or earlier than thirty 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 C, paragraph 3, subdivision (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 an authenticated notification of disposition to each secured party named in that response and whose financing statement covered the collateral.
Section: Previous 47-9604 47-9605 47-9606 47-9607 47-9608 47-9609 47-9610 47-9611 47-9612 47-9613 47-9614 47-9615 47-9616 47-9617 47-9618 NextLast modified: October 13, 2016