Article 9 — Secured Transactions · Section 9-611
An overview of UCC § 9-611, which governs the notice requirements for secured parties upon disposition of collateral.
Source: U.C.C. § 9-611
A secured party shall send an authenticated notification of disposition to: (1) the debtor; (2) any secondary obligor; and (3) if the collateral is inventory, the parties listed in § 9-611(a)(3)(C) through (G) prior to the disposition of the collateral.
UCC § 9-611 outlines the requirements for secured parties to notify the debtor and certain other parties before selling or otherwise disposing of collateral. The purpose of this notice is to ensure that affected parties are informed of the impending action and have the opportunity to protect their interests.
A creditor or lender who has a legal interest in the collateral pledged by the debtor as security for a loan or obligation.
Property or assets pledged by a debtor to secure a loan or obligation.
Example 1
A bank holds a security interest in a company's inventory. Before selling the inventory to settle the debt, the bank sends notifications to the company and other stakeholders as required by § 9-611.
Example 2
A financing company repossesses a vehicle and plans to sell it. They must notify the debtor and any other relevant parties of the impending sale to comply with the notice requirements of UCC § 9-611.