Iowa Code 554.9611 – Notification before disposition of collateral
Current as of: 2023 | Check for updates
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1.
Notification date.
In this section, “notification date” means the earlier of the dates on which:
a. a secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
b. the debtor and any secondary obligor waive the right to notification.
Terms Used In Iowa Code 554.9611
- Lien: A claim against real or personal property in satisfaction of a debt.
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- Statute: A law passed by a legislature.
2.
Notification of disposition required.
Except as otherwise provided in subsection 4, a secured party that disposes of collateral under section 554.9610 shall send to the persons specified in subsection 3 a reasonable authenticated notification of disposition.
3.
Persons to be notified.
To comply with subsection 2, the secured party shall send an authenticated notification of disposition to:
a. the debtor;
b. any secondary obligor; and
c. if the collateral is other than consumer goods:
(1) any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(2) any other secured party or lienholder that, ten 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:
(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 financing statement against the debtor covering the collateral as of that date; and
(3) 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 section 554.9311, subsection 1.
4.
Subsection 2 inapplicable – perishable collateral – recognized market.
Subsection 2 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.
5.
Compliance with subsection 3, paragraph “c”, subparagraph (2).
A secured party complies with the requirement for notification prescribed by subsection 3, paragraph “c”, subparagraph (2), if:
a. 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 3, paragraph “c”, subparagraph (2); and
b. before the notification date, the secured party:
(1) did not receive a response to the request for information; or
(2) received a response to the request for information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.