Nev. Rev. Stat. § 104.9611

Notification before disposition of collateral

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NRS 104.9611  Notification before disposition of collateral.

      1.  In this section, “notification date” means the earlier of the date on which:

      (a) A secured party sends to the debtor and any secondary obligor a signed notification of disposition; or

      (b) The debtor and any secondary obligor waive the right to notification.

      2.  Except as otherwise provided in subsection 4, a secured party that disposes of collateral under NRS 104.9610 shall send to the persons specified in subsection 3 a reasonable signed notification of disposition.

      3.  To comply with subsection 2, the secured party shall send a signed notification of disposition to:

      (a) The debtor;

      (b) Any secondary obligor; and

      (c) If the collateral is other than consumer goods:

             (1) Any other person from which the secured party has received, before the notification date, a signed notification of a claim of an interest in the collateral;

             (2) Any other secured party or lienholder that, 10 days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:

                   (I) Identified the collateral;

                   (II) Was indexed under the debtor’s name as of that date; and

                   (III) Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and

             (3) Any other secured party that, 10 days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation or treaty described in subsection 1 of NRS 104.9311.

      4.  Subsection 2 does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.

      5.  A secured party complies with the requirement for notification prescribed by subparagraph (2) of paragraph (c) of subsection 3 if:

      (a) Not later than 20 days or earlier than 30 days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor’s name in the office indicated in that subparagraph; and

      (b) Before the notification date, the secured party:

             (1) Did not receive a response to the request for information; or

             (2) Received a response to the request for information and sent a signed notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.

      (Added to NRS by 1999, 350; A 2023, 3229)

     

Notes of Decisions
Cited in 1 case (1 in the last 5 years), 2024–2024 · leading case: Mitchell v. Auto Mart LLC
Mitchell v. Auto Mart LLC (2024) nvd “9610(2), 13 requiring that a disposition after a default be commercially reasonable; NRS 104.9611(2), 14 requiring a secured party to send the debtor a notification of disposition if the secured party 15 disposes of the collateral under NRS 104.”
— Nev. Rev. Stat. § 104.9611(2) — 1 case
Mitchell v. Auto Mart LLC (2024) nvd “9610(2), 13 requiring that a disposition after a default be commercially reasonable; NRS 104.9611(2), 14 requiring a secured party to send the debtor a notification of disposition if the secured party 15 disposes of the collateral under NRS 104.”
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