§ 4-9-611 — Notification before disposition of collateral - definition

(a) 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 a signed
notification of disposition; or

(2) The debtor and any secondary obligor waive the right to notification as
provided in section 4-9-624 (a).

(b) Except as otherwise provided in subsection (d) of this section, a secured
party that disposes of collateral under section 4-9-610 shall send to the persons
specified in subsection (c) of this section a reasonable signed notification of
disposition.

(c) To comply with subsection (b) of this section, the secured party shall send
a signed notification of disposition to:

(1) The debtor;

(2) Any secondary obligor; and

(3) If the collateral is other than consumer goods:

(A) Any other person from which the secured party has received, before the
notification date, a signed notification of a claim of an interest in the collateral;

(B) 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

(C) 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 section 4-9-311 (a).

(d) Subsection (b) of this section does not apply if the collateral is perishable
or the creditor in good faith believes that the collateral threatens to decline
speedily in value or is of a type customarily sold on a recognized market. The
specific reference to good faith in this subsection (d) does not abrogate the general
obligation of the secured party to proceed in a commercially reasonable manner.

(e) A secured party complies with the requirement for notification prescribed
by subsection (c)(3)(B) 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 subparagraph (B) of paragraph (3) of subsection (c) 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 a signed
notification of disposition to each secured party or other lienholder named in that
response whose financing statement covered the collateral.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1404, � 1, effective July 1. L. 2023: (a)(1), (b), IP(c), (c)(3)(A), IP(e), and (e)(2)(B) amended, (SB 23-090), ch. 136, p. 560, � 79, effective August 7.