NC General Statutes

N.C. Gen. Stat. § 25-9-611 (2026)

Notification before disposition of collateral

✓ current as of July 2026

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(a) Notification Date. - In this section, notification date means the date of the earlier of the following:

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

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

(b) Notification of Disposition Required. - Except as otherwise provided in subsection (d) of this section, a secured party that disposes of collateral under G.S. 25-9-610 shall send to the persons specified in subsection (c) of this section a reasonable signed notification of disposition.

(c) Persons to be Notified. - To comply with subsection (b) of this section, the secured party shall send a signed notification of disposition to all of the following:

(1) The debtor.

(2) Any secondary obligor.

(3) If the collateral is other than consumer goods, all of the following:

a. 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.

b. 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 meets all of the following requirements:

1. Identified the collateral.

2. Was indexed under the debtor's name as of that date.

3. Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date.

c. 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 G.S. 25-9-311(a).

(d) Subsection (b) Inapplicable to Perishable Collateral or Recognized Market. - Subsection (b) of this section 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.

(e) Compliance with Sub-Subdivision (c)(3)b. - A secured party complies with the requirement for notification prescribed by sub-subdivision (c)(3)b. of this section if both of the following apply:

(1) 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 sub-subdivision (c)(3)b. of this section.

(2) Before the notification date, either of the following applied:

a. The secured party did not receive a response to the request for information.

b. The secured party 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. (1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1; 2025-25, s. 98.)

Notes of Decisions

Cited in 4 cases (1 in the last 5 years), 2008–2021 · leading case: Bartlett Milling Co., LP v. Walnut Grove Auction & Realty Co., Inc., 665 S.E.2d 478 (N.C. Ct. App. 2008).

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Bartlett Milling Co., LP v. Walnut Grove Auction & Realty Co., Inc., 665 S.E.2d 478 (N.C. Ct. App. 2008). · cites it 2× “Defendants argue that though they failed to provide plaintiffs with written notice of the auction, as required by North Carolina General Statutes, section 25-9-611, plaintiffs had actual notice, and therefore were barred from arguing the impropriety of the auction, or the…”

Potts v. Kel, LLC, 2021 NCBC 72 (N.C. Bus. Ct. 2021). · cites it 3× “” N.C.G.S. § 25-9-611(c)(1); see also id. § 25-9-610(b).”

Sanders v. Smith Debnam Narron Drake Saintsing & Myers, LLP (M.D.N.C. 2020). “§ 25-9-611 (b). .. . [A] plain reading of the applicable definitions quite plainly reveals that there can be no “secured patty” in the absence of an enforceable security interest, and where the parties’ security agreement is canceled, so too is the security interest that was…”

VFS Leasing v. Bric Constructors, LLC (Tenn. Ct. App. 2012). “In a non-consumer goods transaction, a sufficient notification of disposition is one that (1) describes the debtor and the secured party, (2) describes the collateral that is the subject of the intended disposition, (3) states the method of intended disposition, (4) states that…”

— N.C. Gen. Stat. § 25-9-611(c)(1) — 1 case

Potts v. Kel, LLC, 2021 NCBC 72 (N.C. Bus. Ct. 2021). “” N.C.G.S. § 25-9-611(c)(1); see also id. § 25-9-610(b).”

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