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This entry was published on 2014-09-22
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Duties of Secured Party If Account Debtor Has Been Notified of Assignment
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 9, PART 2, SUBPART 2
Section 9--209. Duties of Secured Party If Account Debtor Has Been

Notified of Assignment.

(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 Section 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.