§ 104.9611 — Notification before disposition of collateral

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 NRS 104.9610 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; and
(c) If the collateral is other than consumer goods:
(1) 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;
(2) Any other secured party or lienholder that, 10 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
(3) Any other secured party that, 10 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 NRS 104.9311 .
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 requirement for notification prescribed by subparagraph (2) of paragraph (c) of subsection 3 if:
(a) Not later than 20 days or earlier than 30 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 that subparagraph; 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.

Legislative History

(Added to NRS by 1999, 350 ; A 2023, 3229 )