§9-208. Additional duties of secured party having control of collateral

Link to law: http://legislature.vermont.gov/statutes/section/09A/009/00208
Published: 2015

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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.)
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