§ 25-9-611. Notification before disposition of collateral. - North Carolina Statutes - USA Laws Searching

Statutes > North Carolina Statutes > Chapter 25 - Uniform Commercial Code. > § 25-9-611. Notification before disposition of collateral.

§ 25-9-611. Notification before disposition of collateral.

§25‑9‑611.  Notification before disposition of collateral.

(a)        "Notificationdate." – In this section, "notification date" means the earlierof the date on which:

(1)        A secured partysends to the debtor and any secondary obligor an authenticated notification ofdisposition; or

(2)        The debtor and anysecondary obligor waive the right to notification.

(b)        Notification ofdisposition required. – Except as otherwise provided in subsection (d) of thissection, a secured party that disposes of collateral under G.S. 25‑9‑610shall send to the persons specified in subsection (c) of this section areasonable authenticated notification of disposition.

(c)        Persons to benotified. – To comply with subsection (b) of this section, the secured partyshall send an authenticated notification of disposition to:

(1)        The debtor;

(2)        Any secondaryobligor; and

(3)        If the collateral isother than consumer goods:

a.         Any other personfrom which the secured party has received, before the notification date, anauthenticated notification of a claim of an interest in the collateral;

b.         Any other securedparty or lienholder that, 10 days before the notification date, held a securityinterest in or other lien on the collateral perfected by the filing of afinancing statement that:

1.         Identified thecollateral;

2.         Was indexed underthe debtor's name as of that date; and

3.         Was filed in theoffice in which to file a financing statement against the debtor covering thecollateral as of that date; and

c.         Any other securedparty that, 10 days before the notification date, held a security interest inthe collateral perfected by compliance with a statute, regulation, or treatydescribed in G.S. 25‑9‑311(a).

(d)        Subsection (b)inapplicable: perishable collateral; recognized market. – Subsection (b) ofthis section does not apply if the collateral is perishable or threatens todecline speedily in value or is of a type customarily sold on a recognizedmarket.

(e)        Compliance with sub‑subdivision(c)(3)b. – A secured party complies with the requirement for notificationprescribed by sub‑subdivision (c)(3)b. of this section if:

(1)        Not later than 20days or earlier than 30 days before the notification date, the secured partyrequests, in a commercially reasonable manner, information concerning financingstatements indexed under the debtor's name in the office indicated in sub‑subdivision(c)(3)b. of this section; and

(2)        Before thenotification date, the secured party:

a.         Did not receive aresponse to the request for information; or

b.         Received a responseto the request for information and sent an authenticated notification ofdisposition to each secured party or other lienholder named in that responsewhose financing statement covered the collateral. (1965, c. 700, s. 1; 1975, c.862, s. 7; 2000‑169, s. 1.)