(a) Notification Date. - In this section, notification date means the date of the earlier of the following: (1) A secured party sends to the debtor and any secondary obligor a signed notification of disposition. (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 G.S. 25-9-610 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 all of the following: (1) The debtor. (2) Any secondary obligor. (3) If the collateral is other than consumer goods, all of the following: 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, 10 days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that meets all of the following requirements: 1. Identified the collateral. 2. Was indexed under the debtor's name as of that date. 3. Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date. c. Any other secured party that, 10 days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in G.S. 25-9-311(a). (d) Subsection (b) Inapplicable to Perishable Collateral or Recognized Market. - Subsection (b) of this section 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 Sub-Subdivision (c)(3)b. - A secured party complies with the requirement for notification prescribed by sub-subdivision (c)(3)b. of this section if both of the following apply: (1) Not later than 20 days or earlier than 30 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 sub-subdivision (c)(3)b. of this section. (2) Before the notification date, either of the following applied: a. The secured party did not receive a response to the request for information. b. The secured party 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.
‹ Prev All North Carolina sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.