400.9-611. Notification before disposition of collateral. - Missouri Statutes

Notification before disposition of collateral.

400.9-611. (a) In this section, "notification date" means theearlier of the date on which:

(1) A secured party sends to the debtor and any secondary obligor anauthenticated notification of disposition; or

(2) The debtor and any secondary obligor waive the right tonotification.

(b) Except as otherwise provided in subsection (d), a secured partythat disposes of collateral under section 400.9-610 shall send to thepersons specified in subsection (c) a reasonable authenticated notificationof disposition.

(c) To comply with subsection (b), the secured party shall send anauthenticated 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 ofan interest in the collateral;

(B) Any other secured party or lienholder that, ten days before thenotification date, held a security interest in or other lien on thecollateral 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 statementagainst the debtor covering the collateral as of that date; and

(C) Any other secured party that, ten days before the notificationdate, held a security interest in the collateral perfected by compliancewith a statute, regulation, or treaty described in section 400.9-311(a).

(d) Subsection (b) does not apply if the collateral is perishable orthreatens to decline speedily in value or is of a type customarily sold ona recognized market.

(e) A secured party complies with the requirement for notificationprescribed by subsection (c)(3)(B) if:

(1) Not later than twenty days or earlier than thirty days before thenotification date, the secured party requests, in a commercially reasonablemanner, information concerning financing statements indexed under thedebtor'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 anauthenticated notification of disposition to each secured party or otherlienholder named in that response whose financing statement covered thecollateral.

(L. 2001 S.B. 288, A.L. 2002 S.B. 895)