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Home » US Law » 2022 Maryland Statutes » Commercial Law » Title 9 - Secured Transactions » Subtitle 6 - Default » Section 9-611 – Notification Before Disposition of Collateral

    (a)    In this section, “notification date” means the earlier of the date on which:

        (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), a secured party that disposes of collateral under § 9-610 shall send to the persons specified in subsection (c) a reasonable authenticated notification of disposition.

    (c)    To comply with subsection (b), 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, 10 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, 10 days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in § 9-311(a).

    (d)    Subsection (b) 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)(3)(B) if:

        (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 subsection (c)(3)(B); 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 whose financing statement covered the collateral.