Section 440.9611 - Notification before disposition of collateral.
UNIFORM COMMERCIAL CODE (EXCERPT)
Act 174 of 1962
440.9611 Notification before disposition of collateral.
Sec. 9611.
(1) As used in this section, “notification date” means the earlier of the date on which 1 of the following occurs:
(a) A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition.
(b) The debtor and any secondary obligor waive the right to notification.
(2) Except as otherwise provided in subsection (4), a secured party that disposes of collateral under section 9610 shall send to the persons specified in subsection (3) a reasonable authenticated notification of disposition.
(3) To comply with subsection (2), the secured party shall send an authenticated notification of disposition to all of the following:
(a) The debtor.
(b) Any secondary obligor.
(c) If the collateral is other than consumer goods, all of the following, as applicable:
(i) 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.
(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 identified the collateral, was indexed under the debtor's name as of that date, and was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date.
(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 9311(1).
(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.
(5) A secured party complies with the requirement for notification prescribed by subsection (3)(c)(ii) if the secured party does both of the following:
(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)(c)(ii).
(b) Before the notification date, 1 of the following applies:
(i) The secured party did not receive a response to the request for information.
(ii) The secured party received a response to the request for information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.
History: Add. 2000, Act 348, Eff. July 1, 2001