(a) Except as otherwise provided in subsection (c), this section applies if:
- (1) There is no outstanding secured obligation; and
- (2) The secured party is not committed to make advances, incur obligations or otherwise give value.
- (b) Within ten days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under subsection (a) of section 42a-9-406 an authenticated record that releases the account debtor from any further obligation to the secured party.
- (c) This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible.
(1963, P.A. 526, S. 23; P.A. 01-132, S. 19.)
History: P.A. 01-132 replaced former provisions re effectiveness of a security agreement in household furniture with provisions re duties of a secured party if an account debtor has been notified of an assignment.