Commercial Code section 9613

(a)

Except in a consumer-goods transaction, the following rules apply:

(1)

The contents of a notification of disposition are sufficient if the notification does all of the following:

(A)

It describes the debtor and the secured party.

(B)

It describes the collateral that is the subject of the intended disposition.

(C)

It states the method of intended disposition.

(D)

It states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting.

(E)

It states the time and place of a public disposition or the time after which any other disposition is to be made.

(2)

Whether the contents of a notification that lacks any of the information specified in paragraph (1) are nevertheless sufficient is a question of fact.

(3)

The contents of a notification providing substantially the information specified in paragraph (1) are sufficient, even if the notification includes either of the following:

(A)

Information not specified by that paragraph.

(B)

Minor errors that are not seriously misleading.

(4)

A particular phrasing of the notification is not required.

(5)

The following form of notification and the form appearing in paragraph (3) of subdivision (a) of Section 9614, when completed in accordance with the instructions in subdivision (b) and subdivision (b) or (c), as applicable, of Section 9614, 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]
{1}Name of any debtor that is not an addressee:
[Name of each debtor]
{2}We will sell
the [describe collateral] [to the highest qualified bidder] at public sale. A sale could include a lease or license. The sale will be held
as follows:
Date:
Time:
Place:
{3}We will sell(describe collateral) at private sale sometime after [date]. A sale could include a lease or license.
{4}You are entitled to an accounting of the unpaid indebtedness
secured by the property that we intend to sell
or, as applicable, lease or license.
{5}If you request an accounting you must pay a charge of (amount)
{6}You may request
anaccountingbycallingusat .
[telephone number]

(b)

The following instructions apply to the form of notification in paragraph (5) of subdivision (a):

(1)

The instructions in this subdivision refer to the numbers in braces before items in the form of notification in paragraph (5) of subdivision (a). Do not include the numbers or braces in the notification. The numbers and braces are used only for the purpose of these instructions.

(2)

Include and complete item {1} only if there is a debtor that is not an addressee of the notification and list the name or names.

(3)

Include and complete either item {2}, if the notification relates to a public disposition of the collateral, or item {3}, if the notification relates to a private disposition of the collateral. If item {2} is included, include the words “to the highest qualified bidder” only if applicable.

(4)

Include and complete items {4} and {6}.

(5)

Include and complete item {5} only if the sender will charge the recipient for an accounting.

Source: Section 9613, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=9613.­ (accessed Apr. 24, 2025).

Last Updated

Apr. 24, 2025

§ 9613’s source at ca​.gov