§ 336.9-621 — Notification of Proposal to Accept Collateral
Plain-Language Summary
This section lists who a secured party must notify when it wants to accept collateral in full or partial satisfaction of the debt. The secured party must send its proposal to anyone who gave signed notice of a claim to the collateral and to other secured parties or lienholders who, ten days before the debtor consented, held a perfected interest in that collateral. If the secured party is accepting the collateral in only partial satisfaction, it must also send the proposal to any secondary obligor (such as a guarantor).
336.9-621 NOTIFICATION OF PROPOSAL TO ACCEPT COLLATERAL.
(a) Persons to which proposal to be sent. A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
(1) any person from which the secured party has received, before the debtor consented to the acceptance, a signed notification of a claim of an interest in the collateral;
(2) any other secured party or lienholder that, ten days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral 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 or offices in which to file a financing statement against the debtor covering the collateral as of that date; and
(3) any other secured party that, ten days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in section 336.9-311(a).
(b) Proposal to be sent to secondary obligor in partial satisfaction. A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a).
History:
2000 c 399 art 1 s 122; 2024 c 93 art 9 s 48
History: History: 2000 c 399 art 1 s 122; 2024 c 93 art 9 s 48