Check a notification before disposition of collateral
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- The tool checks a draft against the description of the debtor and the secured party, the collateral, the method of disposition, the statement that the debtor is entitled to an accounting and any charge, and the time and place of a public disposition or the time after which any other disposition is to be made. It lists the debtor, any secondary obligor, and the other persons in Section 9-611 for collateral other than consumer goods, and it calculates the day ten days before the earliest disposition time stated in the draft. It does not write or send the notification.
- What the lawyer must review
- UCC Sections 9-611, 9-612, and 9-613. Section 9-611 requires an authenticated notification of disposition to the debtor and any secondary obligor and, if the collateral is other than consumer goods, to any person from whom the secured party received, before the notification date, an authenticated notification of a claim of an interest in the collateral, and to any other secured party or lienholder that, 10 days before the notification date, held a security interest or lien perfected by a financing statement that identified the collateral, was indexed under the debtor's name as of that date, and was filed in the proper office. The same subsection also reaches a secured party whose interest was perfected by compliance with a statute, regulation, or treaty described in Section 9-311(a). Section 9-612(a) makes reasonable time a question of fact except as subsection (b) provides. In a transaction other than a consumer transaction, a notification of disposition sent after default and 10 days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time. Section 9-613, except in a consumer-goods transaction, treats the contents as sufficient if the notification describes the debtor and the secured party, describes the collateral, states the method of intended disposition, states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, and states the time and place of a public disposition or the time after which any other disposition is to be made. Contents that provide substantially that information are sufficient even with extra information or minor errors that are not seriously misleading. A particular phrasing is not required. The lawyer writes any notification that is sent.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review and assembling provisional schedules. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Preserve original files and relevant metadata. Document provenance and handling, and seek forensic review where authenticity needs to be resolved.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.