30-9-613. Contents and form of notification before disposition of collateral -- general.

     30-9-613. (Effective July 1, 2001) Contents and form of notification before disposition of collateral -- general. (1) Except in a consumer-goods transaction, the following rules apply:
     (a) The contents of a notification of disposition are sufficient if the notification:
     (i) describes the debtor and the secured party;
     (ii) describes the collateral that is the subject of the intended disposition;
     (iii) states the method of intended disposition;
     (iv) states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
     (v) states the time and place of a public sale or the time after which any other disposition is to be made.
     (b) Whether the contents of a notification that lacks any of the information set forth in subsection (1) are nevertheless sufficient is a question of fact.
     (c) The contents of a notification providing substantially the information specified in subsection (1) are sufficient, even if the notification includes:
     (i) information not specified by that subsection; or
     (ii) minor errors that are not seriously misleading.
     (d) A particular phrasing of the notification is not required.
     (2) The following form of notification and the form appearing in 30-9-614(3), when completed, each provides sufficient information:

NOTIFICATION OF DISPOSITION OF COLLATERAL

     To:     [Name of debtor, obligor, or other person to which the notification is sent]
     From:     [Name, address, and telephone number of secured party]
     Name of Debtor(s):     [Include only if debtor(s) are not an addressee]
     [For a public disposition:]
     We will sell [or lease or license, as applicable] the [describe collateral] [to the highest qualified bidder] in public as follows:
     Day and Date: ____________
     Time: ____________________
     Place: ___________________
     [For a private disposition:]
     We will sell [or lease or license, as applicable] the [describe collateral] privately sometime after [day and date].
     You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $_____]. You may request an accounting by calling us at [telephone number]

[End of Form]

History: En. Sec. 110, Ch. 305, L. 1999.

Provided by Montana Legislative Services