§ 10:9-611 — Notification before disposition of collateral

Louisiana § 10:9-611

• Jurisdiction: Louisiana
• Title 10: Commercial Laws

Text

§9-611. 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 a signed
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 R.S. 10:9-610 shall send
to the persons specified in Subsection (c) of this Section a reasonable signed notification of
disposition.
(c) Persons to be notified. 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 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 R.S. 10:9-311(a).
(d) Subsection (b) inapplicable: perishable collateral; recognized market. Subsection
(b) 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 Subparagraph (c)(3)(B). A secured party complies with the
requirement for notification prescribed by Subparagraph (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 Subsection
(c)(3)(B); 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

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