Massachusetts General Laws ch. 106 sec. 9-209 – Duties of Secured Party if Account Debtor has been Notified of Assignment
Section 9–209. (a) Applicability of section. Except as otherwise provided in subsection (c), this section applies if:
Terms Used In Massachusetts General Laws ch. 106 sec. 9-209
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(1) there is no outstanding secured obligation; and
(2) the secured party is not committed to make advances, incur obligations, or otherwise give value.
(b) Duties of secured party after receiving demand from debtor. Within 10 days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under Section 9–406(a) an authenticated record that releases the account debtor from any further obligation to the secured party.
(c) Inapplicability to sales. This section shall not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.