Legislation

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.

* NB Effective until June 3, 2026

* (b) Duties of secured party after receiving demand from debtor.
Within 10 days after receiving a signed demand by the debtor, a secured
party shall send to an account debtor that has received notification
under Section 9--406(a) or 12--106(b) of an assignment to the secured
party as assignee a signed record that releases the account debtor from
any further obligation to the secured party.

* NB Effective June 3, 2026

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