554.9613  Contents and form of notification before disposition of collateral--general.

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 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 section 554.9614, subsection 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:. . . . . . . .

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

Section History: Recent form

  2000 Acts, ch 1149, §111, 187

Internal References

  Referred to in § 554.9602, 554.9614

Footnotes

  Effective July 1, 2001; 2000 Acts, ch 1149, §187; for law prior to July 1, 2001, see Code 2001


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