Duties of Secured Party if Account Debtor Has Been Notified of Assignment

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Secured Transactions
  5. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement
  6. Duties of Secured Party if Account Debtor Has Been Notified of Assignment

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  1. Applicability of Code section. Except as otherwise provided in subsection (c) of this Code section, this Code 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.
  2. Duties of secured party after receiving demand from debtor. Within ten 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 (a) of Code Section 11-9-406 an authenticated record that releases the account debtor from any further obligation to the secured party.
  3. Inapplicability to sales. This Code section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.

(Code 1981, §11-9-209, enacted by Ga. L. 2001, p. 362, § 1.)

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-209.


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