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Current through October 23, 2012
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 § 28:9- 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: _______
"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]
"[End of Form]"
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Source
New.
Contents of Notification
To comply with the "reasonable authenticated notification" requirement of Section 9-611(b), the contents of a notification must be reasonable. Except in a consumer-goods transaction, the contents of a notification that includes the information set forth in paragraph (1) are sufficient as a matter of law, unless the parties agree otherwise. (The reference to "time" of disposition means here, as it did in former Section 9- 504(3), not only the hour of the day but also the date.) Although a secured party may choose to include additional information concerning the transaction or the debtor's rights and obligations, no additional information is required unless the parties agree otherwise. A notification that lacks some of the information set forth in paragraph (1) nevertheless may be sufficient if found to be reasonable by the trier of fact, under paragraph (2). A properly completed sample form of notification in paragraph (5) or in Section 9- 614(a)(3) is an example of a notification that would contain the information set forth in paragraph (1). Under paragraph (4), however, no particular phrasing of the notification is required.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.
