Section 9-611 - Notification before disposition of collateral. - Maryland Statutes

§ 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. 
 

[1999, ch. 282, § 2; 2001, ch. 408, § 2.]