§ 25-9-621. Notification of proposal to accept collateral. - North Carolina Statutes

§25‑9‑621.  Notification of proposal to accept collateral.

(a)        Persons to whichproposal to be sent. – A secured party that desires to accept collateral infull or partial satisfaction of the obligation it secures shall send itsproposal to:

(1)        Any person fromwhich the secured party has received, before the debtor consented to theacceptance, an authenticated notification of a claim of an interest in thecollateral;

(2)        Any other securedparty or lienholder that, 10 days before the debtor consented to theacceptance, held a security interest in or other lien on the collateralperfected by the filing of a financing statement that:

a.         Identified thecollateral;

b.         Was indexed underthe debtor's name as of that date; and

c.         Was filed in theoffice or offices in which to file a financing statement against the debtorcovering the collateral as of that date; and

(3)        Any other securedparty that, 10 days before the debtor consented to the acceptance, held asecurity interest in the collateral perfected by compliance with a statute,regulation, or treaty described in G.S. 25‑9‑311(a).

(b)        Proposal to be sentto secondary obligor in partial satisfaction. – A secured party that desires toaccept collateral in partial satisfaction of the obligation it secures shall sendits proposal to any secondary obligor in addition to the persons described insubsection (a) of this section. (1965, c. 700, s. 1; 1975, c.862, s. 7; 2000‑169, s. 1.)