Section 7-9A-208 - [Effective 7/1/2024] Additional duties of secured party having control of collateral(a) Applicability of section. This section applies to cases in which there is no outstanding secured obligation and 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: (1) a secured party having control of a deposit account under Section 7-9A-104(a)(2) shall send to the bank with which the deposit account is maintained a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party;(2) a secured party having control of a deposit account under Section 7-9A-104(a)(3) shall:(A) pay the debtor the balance on deposit in the deposit account; or(B) transfer the balance on deposit into a deposit account in the debtor's name;(3) a secured party, other than a buyer, having control under Section 7-9A-105 of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (4) a secured party having control of investment property under Section 7-8-106(d)(2) or 7-9A-106(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;(5) a secured party having control of a letter-of-credit right under Section 7-9A-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; (6) a secured party having control under Section 7-7-106 of an authoritative electronic copy of an electronic document shall transfer control of the electronic copy to the debtor or a person designated by the debtor; and(7) a secured party having control under Section 7-12-105 of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.(c) Signed demand. In this section, " signed demand" means a record signed by the debtor demanding that the secured party take one or more of the specific actions described in subsection (b) and reasonably identifying the collateral that is the subject of the demand. The secured party may designate in a record sent to the debtor or as to which the debtor has notice an address to which such demands must be sent. A demand sent to another address of the secured party will be effective, but the 10-day period for action by the secured party does not begin until the person or department at the address specified by the secured party has notice of the demand.Ala. Code § 7-9A-208 (1975)
Amended by Act 2023-492,§ 1, eff. 7/1/2024.Act 2001-481, p. 647, §1; Act 2004-315, p. 464, §2.This section is set out more than once due to postponed, multiple, or conflicting amendments.