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

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  • (a) Applicability of section. Except as otherwise provided in subsection (c), 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 otherwise give value.

  • (b) Duties of secured party after receiving demand from debtor. Within 10 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 § 9–406(a) an authenticated record that releases the account debtor from any further obligation to the secured party.

  • (c) Inapplicability to sales. This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.


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