Title 34.1 Uniform Commercial Code

34.1-9-611. Notification before disposition of collateral.

(a) In this section, "notification date" means the earlier of the date on which: (i) A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or (ii) The debtor and any secondary obligor waive the right to notification. (b) Except as otherwise provided in subsection (d), a secured party that disposes of collateral under section 34.1-9-610 shall send to the persons specified in subsection (c) a reasonable authenticated notification of disposition. (c) To comply with subsection (b), the secured party shall send an authenticated notification of disposition to: (i) The debtor; (ii) Any secondary obligor; and (iii) If the collateral is other than consumer goods: (A) Any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral; (B) Any other secured party or lienholder that, ten (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 (C) Any other secured party that, ten (10) days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation or treaty described in section 34.1-9-311(a). (d) 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) A secured party complies with the requirement for notification prescribed by subparagraph (c)(iii)(B) if: (i) Not later than twenty (20) days or earlier than thirty (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 subparagraph (c)(iii)(B); and (ii) 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 an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.