Texas Business and Commerce Code 9.209 – Duties of Secured Party If Account Debtor Has Been Notified of Assignment
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(a) Except as otherwise provided in Subsection (c), this section applies if:
(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) 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 § 9.406(a) an authenticated record that releases the account debtor from any further obligation to the secured party.
Terms Used In Texas Business and Commerce Code 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.
(c) This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.