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Laws of North Carolina (Last Updated: May 12, 2015) |
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Chapter25. Uniform Commercial Code. |
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Article9. Secured Transactions |
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Part2. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement |
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SUBPART2. Rights and Duties. |
§25-9-209. Duties of secured party if account debtor has been notified of assignment
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(a) Applicability of section. - Except as otherwise provided in subsection (c) of this section, 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 G.S. 25-9-406(a) an authenticated 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.