US Uniform Commercial Code Article 9 Secured Transactions
Part 2: effectiveness of the security agreement, attachment and the rights and duties of parties – US Uniform Commercial Code Article 9 Secured Transactions

US Uniform Commercial Code Article 9 Secured Transactions 9-207-9-210-secured-party-duties: A secured party in possession or control must use reasonable care, account for proceeds, keep collateral identifiable, and answer the debtor's requests for an accounting or a list of collateral within fourteen days

What does 9-207-9-210-secured-party-duties require?

A secured party holding collateral must take reasonable care of it, which for instruments and chattel paper includes the steps needed to keep rights against prior parties alive; reasonable expenses are the debtor's, accidental loss is the debtor's risk so far as insurance does not cover it, the secured party must keep the collateral identifiable (fungible collateral may be commingled), and may use or operate it only to preserve its value, as permitted by court order or, except for consumer goods, as agreed. A secured party holding control over a deposit account, electronic chattel paper, a letter-of-credit right, investment property or a controllable electronic record must, after the obligations are satisfied and within ten days of the debtor's authenticated demand, release control (section 9-208), and a secured party that has notified an account debtor must send a release within ten days of demand once no obligation remains (section 9-209). On a debtor's authenticated request the secured party must, within fourteen days, approve or correct a statement of account or a list of collateral, or authenticate a statement of the aggregate unpaid obligation; one free response per six months, a reasonable charge for more, and a secured party that claims no interest or only an interest in specific collateral must say so (section 9-210).

Maintained by Gerard Blokdyk

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