Prepare the notice before disposing of collateral
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the security and the enforcement file, list the grantor and any higher-ranking secured party, and check the draft notice for the secured party’s name, a description of the collateral, the last day to pay, the statement that the notice is given for the purposes of the Act, and a day at least 10 business days after the notice is given. The tool does not send the notice.
- What the lawyer must review
- The lawyer decides whether a notice is required, whether a shorter period has been agreed in writing, and writes and sends the notice. Section 144 was not opened.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the security and the enforcement file, list the grantor and any higher-ranking secured party, and check the draft notice for the secured party’s name, a description of the collateral, the last day to pay, the statement that the notice is given for the purposes of the Act, and a day at least 10 business days after the notice is given. The tool does not send the notice. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Unless subsection (5) or section 144 applies, notice goes to the grantor and to any other secured party with a higher-priority interest in the collateral. Section 144 was not opened. Do not skip notice on a ground that is only in that section.
- The notice needs the secured party’s name, a description of the collateral, a statement that the collateral will be disposed of unless the obligation is performed or the amount is paid on or before the stated day, and a statement that the notice is given for the purposes of the Act. The day must be at least 10 business days after the day the notice is given, unless that person has given written notice of a shorter period.
- If the secured party proposes to buy the collateral, the notice must also contain the objection details required by Division 5 and the address for a notice of objection under section 137. Division 5 and section 137 were not opened. Do not invent the objection test. Any extra matter required by the regulations was not checked.
- Subsection (5) removes the need for notice where the secured party believes on reasonable grounds that fraud induced the security agreement, that the collateral might perish within 10 business days after seizure, that the value will decline materially if it is not disposed of immediately after seizure, or that preservation expense is disproportionately large, and also where the collateral is foreign currency or is disposed of under the operating rules of a clearing and settlement facility. This is not the default notice on a loan or mortgage.
Sources
- Personal Property Securities Act 2009 section 130 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.