2000 Minnesota Statutes

     336.9-611 Notification before disposition of collateral. 

    (a)    Notification date.  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)    Notification of disposition required.  Except as 
 otherwise provided in subsection (d), a secured party that 
 disposes of collateral under section 336.9-610 shall send to the 
 persons specified in subsection (c) a reasonable authenticated 
 notification of disposition. 

    (c)    Persons to be notified.  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, 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 336.9-311(a). 

    (d)    Subsection (b) inapplicable:  perishable 
 collateral; recognized market.  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)    Compliance with subsection (c)(3)(b).  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. 

    HIST: 2000 c 399 art 1 s 112 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 112, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130.