2006 New York Code - Notification Before Disposition Of Collateral



 
  Section 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
             an authenticated 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),  a  secured party that disposes of collateral under
  Section 9--610 shall send to the persons specified in subsection  (c)  a
  reasonable authenticated notification of disposition.
    (c) Persons to be notified. 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 Section 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  subsection (c) (3) (B). A secured party complies
  with the requirement  for  notification  prescribed  by  subsection  (c)
  (3) (B) 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 an authenticated notification of disposition to each
                 secured party or other lienholder named in that  response
                 whose financing statement covered the collateral.

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