Sec. 42a-9-209. Duties of secured party if account debtor has been notified of assignment.
Sec. 42a-9-209. Duties of secured party if account debtor has been notified of
assignment. (a) Except as otherwise provided in subsection (c), this section applies if:
(1) There is no outstanding secured obligation; and
(2) The secured party is not committed to make advances, incur obligations or otherwise give value.
(b) Within ten days after receiving an authenticated demand by the debtor, a secured
party shall send to an account debtor that has received notification of an assignment to
the secured party as assignee under subsection (a) of section 42a-9-406 an authenticated
record that releases the account debtor from any further obligation to the secured party.
(c) This section does not apply to an assignment constituting the sale of an account,
chattel paper or payment intangible.
(1963, P.A. 526, S. 23; P.A. 01-132, S. 19.)
History: P.A. 01-132 replaced former provisions re effectiveness of a security agreement in household furniture with
provisions re duties of a secured party if an account debtor has been notified of an assignment.