AI-assisted research summary: A secured party disposing of collateral must send a reasonable signed notice of disposition to specified persons, unless an exception applies.
§9-611. Notification before disposition of collateral (a) "Notification date." 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 a signed notification of disposition; or (2) the debtor and any secondary obligor waive the right to notification. (b) Notification of disposition required. Except as otherwise provided in Subsection (d) of this Section, a secured party that disposes of collateral under R.S. 10:9-610 shall send to the persons specified in Subsection (c) of this Section a reasonable signed notification of disposition. (c) Persons to be notified. To comply with Subsection (b) of this Section, the secured party shall send a signed 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, a signed notification of a claim of an interest in the collateral; (B) any other secured party or lienholder that, ten days before the notification date, held a security interest in or 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, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in R.S. 10:9-311(a). (d) Subsection (b) inapplicable: perishable collateral; recognized market. 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) Compliance with Subparagraph (c)(3)(B). A secured party complies with the requirement for notification prescribed by Subparagraph (c)(3)(B) of this Section if: (1) not later than twenty days or earlier than thirty 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 a signed notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral. Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.