§ 25-9-209. Duties of secured party if account debtor has been notified of assignment. - North Carolina Statutes

§25‑9‑209.  Duties of secured party if account debtor has beennotified of assignment.

(a)        Applicability ofsection. – Except as otherwise provided in subsection (c) of this section, thissection applies if:

(1)        There is nooutstanding secured obligation; and

(2)        The secured party isnot committed to make advances, incur obligations, or otherwise give value.

(b)        Duties of securedparty after receiving demand from debtor. – Within 10 days after receiving anauthenticated demand by the debtor, a secured party shall send to an accountdebtor that has received notification of an assignment to the secured party asassignee under G.S. 25‑9‑406(a) an authenticated record thatreleases the account debtor from any further obligation to the secured party.

(c)        Inapplicability tosales. – This section does not apply to an assignment constituting the sale ofan account, chattel paper, or payment intangible. (2000‑169, s. 1.)