§ 9-611. Notification before disposition of collateral

   (a) 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 an authenticated notification of disposition; or

   (2) 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 § 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:

   (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, an authenticated notification of a claim of an interest in the collateral;

      (B) 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

      (C) 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 § 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 subsection (c)(3)(B) if:

   (1) 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 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 an authenticated notification of disposition to each secured party named in that response whose financing statement covered the collateral.

HISTORY: 1999, ch. 282, § 2; 2001, ch. 408, § 2.