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Difference between revisions of "Creditors' Remedies against Debtors (10:III)"
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Creditors' Remedies against Debtors (10:III) (view source)
Revision as of 21:51, 2 October 2022
, 21:51, 2 October 2022→8. Notice of Intention to Dispose of Collateral
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'''When a secured party is considering methods of disposal, they must give notice to the following parties (see s 59(6) and s 60(2)):''' | '''When a secured party is considering methods of disposal, they must give notice to the following parties (see s 59(6) and s 60(2)):''' | ||
:i) the debtor; | |||
:ii) any other person who is known by the secured party as the owner of the collateral (where that is not the debtor); | |||
:iii) any creditor or person with a security interest in the collateral whose interest is subordinate to the secured party, who registered a financing statement, or whose security interest is perfected by possession at the time of seizure or repossession of the collateral; and | |||
:iv) any other person with an interest in the collateral who has given notice to the secured party of their interest in the collateral before the notice of disposition is given to the debtor. | |||
'''The secured party is required to include specific information in the notice (see s 59(7)):''' | '''The secured party is required to include specific information in the notice (see s 59(7)):''' | ||
:i) a description of the collateral; | |||
:ii) the amount required to satisfy the obligation secured by the security interest; | |||
:iii) the arrears owing (exclusive of the operation of an acceleration clause); | |||
:iv) the expenses associated with seizure and repossession; and | |||
:v) the date, time and place of disposition. | |||
'''In the case of a receiver attending to the disposition of the collateral, the receiver must give notice to (see s 59(10) and 60(2)):''' | '''In the case of a receiver attending to the disposition of the collateral, the receiver must give notice to (see s 59(10) and s 60(2)):''' | ||
:i) the debtor; | |||
:ii) any other person known by the secured party to be an owner of the collateral; | |||
:iii) any creditor with a security interest subordinate to that other secured party, who has either registered the financing statement, or who has perfected its security interest by possession at the time of the seizure or repossession of the collateral; and | |||
:iv) any other person with an interest in the collateral who has notified the receiver of that interest in the collateral before the notice of disposition is given to the debtor. | |||
'''The notice that the receiver must provide need contain only (see s 59(11)):''' | '''The notice that the receiver must provide need contain only (see s 59(11)):''' | ||
:i) a description of the collateral; | |||
:ii) a statement that unless the collateral is redeemed it will be disposed of; and | |||
:iii) the date, time and place of any sale by public auction, or the place to which closed tenders may be delivered and the date after which closed tenders will not be accepted | |||
=== 9. Surplus or Deficiency === | === 9. Surplus or Deficiency === | ||