§ 41-09-108 — (9-611) Notification before disposition of collateral

North Dakota § 41-09-108

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-09: Secured Transactions

Text

1. In this section, "notification date" means the earlier of the date on which:
a. A secured party sends to the debtor and any secondary obligor a signed
notification of disposition; or
b. The debtor and any secondary obligor waive the right to notification.
2. Except as otherwise provided in subsection 4, a secured party that disposes of
collateral under section 41-09-107 shall send to the persons specified in subsection 3
a reasonable signed notification of disposition.
3. To comply with subsection 2, the secured party shall send a signed notification of
disposition to:
a. The debtor;
b. Any secondary obligor;
c. 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;
d. 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:
(1) Identified the collateral;
(2) Was indexed under the debtor's name as of that date; and
(3) Was filed in the office in which to file a financing statement against the
debtor covering the collateral as of that date; and
e. 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 subsection 1 of section 41-09-31.
4. Subsection 2 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.
5. A secured party complies with the requirements for notification prescribed by
paragraph 2 of subdivision c of subsection 3 if:
a. 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 paragraph 2 of subdivision c of subsection 3; and
b. Before the notification date, the secured party:
(1) Did not receive a response to the request for information; or
(2) 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.