N.C. Gen. Stat. § 25-9-613
Contents and form of notification before disposition of collateral: general
Redline — June 1, 2021 → current.View current text →
Current — April 1, 2022
As of June 1, 2021
Except in a consumer-goods transaction, the following rules apply:
Except in a consumer-goods transaction, the following rules apply:
(1) The contents of a notification of disposition are sufficient if the notification: Describes the debtor and the secured party;
(1) The contents of a notification of disposition are sufficient if the notification: Describes the debtor and the secured party;
(2) Describes the collateral that is the subject of the intended disposition;
(2) Describes the collateral that is the subject of the intended disposition;
(3) States the method of intended disposition;
(3) States the method of intended disposition;
(4) States that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
(4) States that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
(5) States the time and place of a public disposition or the time after which any other disposition is to be made.
(5) States the time and place of a public disposition or the time after which any other disposition is to be made.
(6) Whether the contents of a notification that lacks any of the information specified in subdivision (1) of this section are nevertheless sufficient is a question of fact.
(6) Whether the contents of a notification that lacks any of the information specified in subdivision (1) of this section are nevertheless sufficient is a question of fact.
(7) The contents of a notification providing substantially the information specified in subdivision (1) of this section are sufficient, even if the notification includes: Information not specified by that subdivision; or
(7) The contents of a notification providing substantially the information specified in subdivision (1) of this section are sufficient, even if the notification includes: Information not specified by that subdivision; or
(8) Minor errors that are not seriously misleading.
(8) Minor errors that are not seriously misleading.
(9) A particular phrasing of the notification is not required.
(9) A particular phrasing of the notification is not required.
(10) The following form of notification and the form appearing in G.S. 25-9-614(3), when completed, each provides sufficient information:
(10) The following form of notification and the form appearing in G.S. 25-9-614(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) is/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]
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) is/are not an addressee] [For a public disposition:] We will sell [or lease or license, as applicable] the [to the highest qualified bidder] in public as follows: [describe collateral] Day and Date: Time: Place: [For a private disposition:] We will sell [or lease or license, as applicable] the privately sometime after. [describe collateral] [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]
History
(2000-169, s. 1.)
AMENDED OFFICIAL COMMENT (2010 EDITION)
1. Source. New.
2. 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(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.
This section applies to a notification of a public disposition conducted electronically. A notification of an electronic disposition satisfies paragraph (1)(E) if it states the time when the disposition is scheduled to begin and states the electronic location. For example, under the technology current in 2010, the Uniform Resource Locator (URL) or other Internet address where the site of the public disposition can be accessed suffices as an electronic location.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.