11-9-611. Notification before disposition of collateral.

“Notification date.” As used in this Code section, the term “notification date” means the earlier of the date on which:#

1. (1)

   A secured party sends to the debtor and any secondary obligor a signed notification of disposition; or#

2. (2)

   The debtor and any secondary obligor waive the right to notification.#

Notification of disposition required. Except as otherwise provided in subsection (d) of this Code section, a secured party that disposes of collateral under Code Section 11-9-610 shall send to the persons specified in subsection (c) of this Code section a reasonable signed notification of disposition.#

Persons to be notified. To comply with subsection (b) of this Code section, the secured party shall send a signed notification of disposition to:#

1. (1)

   The debtor;#

2. (2)

   Any secondary obligor; and#

3. (3)

   If the collateral is other than consumer goods:#

   1. (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;#

   2. (B)

      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:#

      1. (i)

         Identified the collateral;#

      2. (ii)

         Was indexed under the debtor’s name as of that date; and#

      3. (iii)

         Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and#

   3. (C)

      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 subsection (a) of Code Section 11-9-311.#

Subsection (b) of this Code section inapplicable; perishable collateral; recognized market. Subsection (b) of this Code 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.#

Compliance with subparagraph (c)(3)(B) of this Code section. A secured party complies with the requirement for notification prescribed by subparagraph (c)(3)(B) of this Code section if:#

1. (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 subparagraph (c)(3)(B) of this Code section; and#

2. (2)

   Before the notification date, the secured party:#

   1. (A)

      Did not receive a response to the request for information; or#

   2. (B)

      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.#