Section 9-1209 - [Effective 7/1/2025] Duties of secured party if account debtor has been notified of assignment(1). Except as otherwise provided in subsection (3), this section applies if: (a). There is no outstanding secured obligation; and [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).](b). The secured party is not committed to make advances, incur obligations or otherwise give value. [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).] [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).]
(2). Within 20 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 section 9-1406, subsection (1) an authenticated record that releases the account debtor from any further obligation to the secured party. [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).]
(3). This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible. [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).]
Amended by 2024, c. 669,§ A-94, eff. 7/1/2025.1999, c. 699, §A2 (NEW) . 1999, c. 699, §A4 (AFF) .This section is set out more than once due to postponed, multiple, or conflicting amendments.