Duties of secured party if account debtor has been notified of assignment.

  1. Law
  2. Colorado Revised Statutes
  3. Uniform Commercial Code
  4. Secured Transactions
  5. Duties of secured party if account debtor has been notified of assignment.

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  1. 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 otherwisegive value.

  2. Within ten days after receiving an authenticated demand by the debtor, a securedparty shall send to an account debtor that has received notification of an assignment to the secured party as assignee under section 4-9-406 (a) an authenticated record that releases the account debtor from any further obligation to the secured party.

  3. This section does not apply to an assignment constituting the sale of an account,chattel paper, or payment intangible.

Source: L. 2001: Entire article R&RE, p. 1340, § 1, effective July 1.


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