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Session Laws, 1999
Volume 796, Page 2061   View pdf image
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(B) OTHERWISE TO FULL OR LIMITED RECOURSE AGAINST THE
DEBTOR OR A SECONDARY OBLIGOR BASED ON THE NONPAYMENT OR OTHER
DEFAULT OF AN ACCOUNT DEBTOR OR OTHER OBLIGOR ON THE COLLATERAL; AND

(2) SUBSECTIONS (B) AND (C) DO NOT APPLY.
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 § 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 § 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 § 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 § 8-106(D)(2) OF THIS ARTICLE 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

 

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Session Laws, 1999
Volume 796, Page 2061   View pdf image
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