62A.9A-611 - Notification before disposition of collateral.

Notification before disposition of collateral.

(a) "Notification date." 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) Notification of disposition required. Except as otherwise provided in subsection (d) of this section, a secured party that disposes of collateral under RCW 62A.9A-610 shall send to the persons specified in subsection (c) of this section a reasonable authenticated notification of disposition.

     (c) Persons to be notified. 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 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

     (B) 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 RCW 62A.9A-311(a).

     (d) Subsection (b) of this section inapplicable: Perishable collateral; recognized market. 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) Compliance with subsection (c)(3)(A) of this section. A secured party complies with the requirement for notification prescribed by subsection (c)(3)(A) 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)(3)(A) 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 or other lienholder named in that response whose financing statement covered the collateral.

[2000 c 250 § 9A-611.]