Arizona § 47-9611 - Notification before disposition of collateral

§ 47-9611. 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 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.