Arizona Laws 47-9611. Notification before disposition of collateral
A. In this section, "notification date" means the earlier of the date on which:
Terms Used In Arizona Laws 47-9611
- Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
- Consumer goods: means goods that are used or bought for use primarily for personal, family or household purposes. See Arizona Laws 47-9102
- Debtor: means :
(a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(c) A consignee. See Arizona Laws 47-9102
- Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Arizona Laws 47-9102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligor: means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, owes payment or other performance of the obligation, has provided property other than the collateral to secure payment or other performance of the obligation or is otherwise accountable in whole or in part for payment or other performance of the obligation. See Arizona Laws 47-9102
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Secondary obligor: means an obligor to the extent that:
(a) The obligor's obligation is secondary; or
(b) The obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor or property of either. See Arizona Laws 47-9102
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
- Statute: A law passed by a legislature.
1. A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
2. The debtor and any secondary obligor waive the right to notification.
B. Except as otherwise provided in subsection D of this section, a secured party that disposes of collateral under section 47-9610 shall send to the persons specified in subsection C of this section a reasonable authenticated notification of disposition.
C. To comply with subsection B of this section, the secured party shall send an authenticated notification of disposition to:
1. The debtor;
2. Any secondary obligor; and
3. If the collateral is other than consumer goods:
(a) Any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(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:
(i) Identified the collateral;
(ii) Was indexed under the debtor’s name as of that date; and
(iii) Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and
(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 section 47-9311, subsection A.
D. Subsection B of this 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.
E. A secured party complies with the requirement for notification prescribed by subsection C, paragraph 3, subdivision (b) of this section if:
1. Not later than twenty days or earlier than thirty 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 subsection C, paragraph 3, subdivision (b) of this section; and
2. Before the notification date, the secured party:
(a) Did not receive a response to the request for information; or
(b) Received a response to the request for information and sent an authenticated notification of disposition to each secured party named in that response and whose financing statement covered the collateral.