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Terms Used In Vermont Statutes Title 9 Sec. 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.

§ 9—209. Duties of secured party if account debtor has been notified of assignment

(a) Except as otherwise provided in subsection (c) of this section, 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 subsection 9—406(a) of this title an authenticated record that releases the account debtor from any further obligation to the secured party.

(c) This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)