§ 6A-9-611 - Notification before disposition of collateral. - Rhode Island Statutes

SECTION 6A-9-611

   § 6A-9-611  Notification before dispositionof collateral. – (a) "Notification date." In this section, "notification date" means theearlier of the date on which:

   (1) A secured party sends to the debtor and any secondaryobligor an authenticated notification of disposition; or

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

   (b) Notification of disposition required. Except asotherwise provided in subsection (d), a secured party that disposes ofcollateral under § 6A-9-610 shall send to the persons specified insubsection (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 dispositionto:

   (1) The debtor;

   (2) Any secondary obligor; and

   (3) If the collateral is other than consumer goods:

   (i) Any other person from which the secured party hasreceived, before the notification date, an authenticated notification of aclaim of an interest in the collateral;

   (ii) Any other secured party or lienholder that, 10 daysbefore the notification date, held a security interest in or other lien on thecollateral perfected by the filing of a financing statement that:

   (A) Identified the collateral;

   (B) Was indexed under the debtor's name as of that date; and

   (C) Was filed in the office in which to file a financingstatement against the debtor covering the collateral as of that date; and

   (iii) Any other secured party that, 10 days before thenotification date, held a security interest in the collateral perfected bycompliance with a statute, regulation, or treaty described in §6A-9-311(a).

   (d) Subsection (b) inapplicable: perishable collateral;recognized market. Subsection (b) does not apply if the collateral isperishable or threatens to decline speedily in value or is of a typecustomarily sold on a recognized market.

   (e) Compliance with subsection (c)(3)(ii). A securedparty complies with the requirement for notification prescribed by subsection(c)(3)(ii) if:

   (1) Not later than 20 days or earlier than 30 days before thenotification date, the secured party requests, in a commercially reasonablemanner, information concerning financing statements indexed under the debtor'sname in the office indicated in subsection (c)(3)(ii); and

   (2) Before the notification date, the secured party:

   (i) Did not receive a response to the request forinformation; or

   (ii) Received a response to the request for information andsent an authenticated notification of disposition to each secured party orother lienholder named in that response whose financing statement covered thecollateral.