Contents and form of notification before disposition of collateral: general

Checkout our iOS App for a better way to browser and research.

  • Except in a consumer-goods transaction, the following rules apply:
    • (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 paragraph (1) are nevertheless sufficient is a question of fact.

    • (3) The contents of a notification providing substantially the information specified in paragraph (1) are sufficient, even if the notification includes:

      • (A) information not specified by that paragraph; 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 § 9–614(3), when completed, each provides sufficient information:

        • To: [Name of debtor. obligor, or other person to which

the notification is sent]

Debtor(s):

[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: ____

Time: ____

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 $____]. You may request an accounting by calling us at ____ [telephone number].


Download our app to see the most-to-date content.