Contents and form of notification before disposition of collateral -- General.

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  • (1) The contents of a notification of disposition are sufficient if the notification:
    • (a) describes the debtor and the secured party;
    • (b) describes the collateral that is the subject of the intended disposition;
    • (c) states the method of intended disposition;
    • (d) states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
    • (e) states the time and place of a public disposition or the time after which any other disposition is to be made.
  • (2) Whether the contents of a notification that lacks any of the information specified in Subsection (1) are nevertheless sufficient is a question of fact.
  • (3) The contents of a notification providing substantially the information specified in Subsection (1) are sufficient, even if the notification includes:
    • (a) information not specified by that subsection; or
    • (b) minor errors that are not seriously misleading.
  • (4) A particular phrasing of the notification is not required.
  • (5) The following form of notification and the form appearing in Subsection 70A-9a-614(3), when completed, each provides sufficient information:

    NOTIFICATION OF DISPOSITION OF COLLATERAL
    To: [Name of debtor, obligor, or other person to which the notification is sent]
    From: [Name, address, and telephone number of secured party]
    Name of Debtor(s): [Include only if debtor(s) are not an addressee]
    [For a public disposition:]
    We will sell [or lease or license, as applicable] the [describe collateral] [to the highest qualified bidder] in public as follows:
    Day and Date: [Insert day and date]
    Time: [Insert time]
    Place: [Insert place]
    [For a private disposition:]
    We will sell [or lease or license, as applicable] the [describe collateral] privately sometime after [day and date].
    You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $[Insert amount] ]. You may request an accounting by calling us at [telephone number].




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