§ 10:9-209 — Duties of secured party if account debtor has been notified of assignment

§9-209. Duties of secured party if account debtor has been notified of assignment
(a) Applicability of Section. Except as otherwise provided in Subsection (c), this
Section applies if:
(1) there is no outstanding secured obligation; and
(2) the secured party is not committed to make advances, incur obligations, or
otherwise give value.
(b) Duties of secured party after receiving demand from debtor. Within ten days
after receiving a signed demand by the debtor, a secured party shall send to an account debtor
that has received notification under R.S. 10:9-406(a) or 12-106(b) of an assignment to the
secured party as assignee a signed record that releases the account debtor from any further
obligation to the secured party.
(c) Inapplicability to sales. This Section does not apply to an assignment constituting
the sale of an account, chattel paper, or payment intangible.

Legislative History

Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.