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The Vermont Statutes Online
Title
09A
:
Uniform Commercial Code
Chapter
009
:
Secured Transactions
§
9-208. Additional duties of secured party having control of collateral
(a) 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) Within 10
days after receiving an authenticated demand by the debtor:
(1) a secured
party having control of a deposit account under section 9-104(a)(2) shall send
to the bank with which the deposit account is maintained an authenticated
statement 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 9-104(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 of electronic chattel paper under
section 9-105 shall:
(A) communicate
the authoritative copy of the electronic chattel paper to the debtor or its
designated custodian;
(B) if the
debtor designates a custodian that is the designated custodian with which the
authoritative copy of the electronic chattel paper is maintained for the
secured party, communicate to the custodian an authenticated record releasing
the designated custodian from any further obligation to comply with
instructions originated by the secured party and instructing the custodian to
comply with instructions originated by the debtor; and
(C) take
appropriate action to enable the debtor or its designated custodian to make
copies of or revisions to the authoritative copy which add or change an
identified assignee of the authoritative copy without the consent of the
secured party;
(4) a secured party
having control of investment property under section 8-106(d)(2) or 9-106(b)
shall send to the securities intermediary or commodity intermediary with which
the security entitlement or commodity contract is maintained an authenticated
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 9-107 shall send
to each person having an unfulfilled obligation to pay or deliver proceeds of
the letter of credit to the secured party an authenticated release from any
further obligation to pay or deliver proceeds of the letter of credit to the
secured party; and
(6) a secured
party having control of an electronic document shall:
(A) give control
of the electronic document to the debtor or its designated custodian;
(B) if the
debtor designates a custodian that is the designated custodian with which the
authoritative copy of the electronic document is maintained for the secured
party, communicate to the custodian an authenticated record releasing the
designated custodian from any further obligation to comply with instructions
originated by the secured party and instructing the custodian to comply with
instructions originated by the debtor; and
(C) take
appropriate action to enable the debtor or its designated custodian to make
copies of or revisions to the authoritative copy which add or change an
identified assignee of the authoritative copy without the consent of the
secured party. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001;
amended 2015, No. 51, § B.9, eff. June 3, 2015.)