§490:9-613 - Contents and form of notification before disposition of collateral: general.

     §490:9-613  Contents and form of notification before disposition of collateral:  general.  Except in a consumer-goods transaction, the following rules apply:

     (1)  The contents of a notification of disposition are sufficient if the notification:

         (A)  Describes the debtor and the secured party;

         (B)  Describes the collateral that is the subject of the intended disposition;

         (C)  States the method of intended disposition;

         (D)  States that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and

         (E)  States the time and place of a public disposition or the time after which any other disposition is to be made.

     (2)  Whether the contents of a notification that lacks any of the information specified in paragraph (1) are nevertheless sufficient is a question of fact.

     (3)  The contents of a notification providing substantially the information specified in paragraph (1) are sufficient, even if the notification includes:

         (A)  Information not specified by that paragraph; or

         (B)  Minor errors that are not seriously misleading.

     (4)  A particular phrasing of the notification is not required.

     (5)  The following form of notification and the form appearing in section 490:9-614(3), when completed, each provides sufficient information:

NOTIFICATION OF DISPOSITION OF COLLATERAL

          To:            [Name of debtor, obligor, or other person to which the notification is sent]     

          From:          [Name, address, and telephone number of secured party]     

          Name of Debtor(s):      [Include only if debtor(s) are not an addressee]     

          [For a public disposition:]

              We will sell [or lease or license, as applicable] the      [describe collateral]      [to the highest qualified bidder] in public as follows:

          Day and Date: ______________________________

          Time:         ______________________________

          Place:        ______________________________

          [For a private disposition:]

              We will sell [or lease or license, as applicable] the      [describe collateral]      privately sometime after      [day and date]     .

              You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $          ].  You may request an accounting by calling us at      [telephone number]     .

[L 2000, c 241, pt of §1; am L 2001, c 228, §9]