GroundRules
N.Y. Uniform Commercial Code Law § 9-209: Duties of Secured Party If Account Debtor Has Been Notified of Assignment
Where this section sits in the code
- Uniform Commercial Code Law
- Article 9. Secured Transactions
- Part 2. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement
- Subpart 2. Rights and Duties
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 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.
(c) Inapplicability to sales. This section does not apply to an
assignment constituting the sale of an account, chattel paper, or
payment intangible.
Collected 2026-09-14T19:32:45Z. Source file · JSON