§ 4-9-208 — Additional duties of secured party having control of collateral

(a)
This section applies to cases in which there is no outstanding secured obligation
and the secured party is not committed to make advances, incur obligations, or
otherwise give value.

(b) Within five business days after receiving a signed demand by the debtor:

(1) A secured party having control of a deposit account under section 4-9-104 (a)(2) shall send to the bank with which the deposit account is maintained a
signed record that releases the bank from any further obligation to comply with
instructions originated by the secured party;

(2) A secured party having control of a deposit account under section 4-9-104 (a)(3) shall:

(A) Pay the debtor the balance on deposit in the deposit account; or

(B) At the request of the debtor, transfer the balance on deposit into a
deposit account in the debtor's name, providing sufficient information so that the
debtor can access the deposit account.

(2.5) The amount due the debtor shall also include all interest earned on the
deposit account to the extent not already credited to the deposit account or paid to
the debtor from the date the conditions in subsection (a) of this section are
satisfied.

(3) A secured party, other than a buyer, having control under section 4-9-105
of an authoritative electronic copy of a record evidencing chattel paper shall
transfer control of the electronic copy to the debtor or a person designated by the
debtor;

(4) A secured party having control of investment property under section 4-8-106 (d)(2) or 4-9-106 (b) shall send to the securities intermediary or commodity
intermediary with which the security entitlement or commodity contract is
maintained a signed record that releases the securities intermediary or commodity
intermediary from any further obligation to comply with entitlement orders or
directions originated by the secured party;

(5) A secured party having control of a letter-of-credit right under section 4-9-107 shall send to each person having an unfulfilled obligation to pay or deliver
proceeds of the letter of credit to the secured party a signed release from any
further obligation to pay or deliver proceeds of the letter of credit to the secured
party;

(6) A secured party having control under section 4-7-106 of an authoritative
electronic copy of an electronic document shall transfer control of the electronic
copy to the debtor or a person designated by the debtor; and

(7) A secured party having control under section 4-12-105 of a controllable
electronic record, other than a buyer of a controllable account or controllable
payment intangible evidenced by the controllable electronic record, shall transfer
control of the controllable electronic record to the debtor or a person designated
by the debtor.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1338, � 1, effective July 1. L. 2006: (b)(4) and (b)(5) amended and (b)(6) added, p. 500, � 36, effective September 1. L. 2023: IP(b), (b)(1), (b)(3), (b)(4), (b)(5), and (b)(6) amended and (b)(7) added, (SB 23-090), ch. 136, p. 547, � 49, effective August 7.