UCC 9-622 enforcement notice requirements - am I calculating the timeframe correctly?

Thanks, that's what I thought but wanted confirmation. We're in Texas. I'll double-check if there are any state-specific additions to the notice requirements.

Texas doesn't add much beyond standard UCC for 9-622 notices but definitely verify the debtor's current address. Had a case thrown out because we used an old address even though we had certified mail receipts.

Good point about guarantors. We do have a personal guarantee from the business owner. Should I send separate notices or can I combine them?

I always send separate notices to be safe. It's not much extra cost and eliminates any argument about proper notice to each party.

Definitely separate notices. Courts get picky about this stuff and you don't want to give them any reason to question your compliance.

What do you mean about collateral value affecting notice provisions? I thought 9-622 applied regardless of value.

You're right that 9-622 applies generally, but there are different notice periods and requirements depending on whether it's consumer goods vs equipment, and the proposed disposition method affects timing too.

That sounds helpful. Did it catch anything you missed in your manual review?

Actually yes - there was a slight variation in how the debtor name was spelled between our original UCC-1 and a continuation we filed. Nothing major but good to know about before enforcement proceedings.

Name discrepancies can definitely cause problems in enforcement. Better to catch them early than have them raised as a defense later.

Good reminder. The redemption amount calculation can get tricky if there are multiple defaults and fees involved.

Exactly. I always include a detailed breakdown of the redemption amount in the notice to avoid disputes later.

Probably private sale given the specialized nature of the equipment. Public auction wouldn't likely generate competitive bidding for manufacturing equipment this specific.

Makes sense. Private sale gives you more flexibility but make sure your price is commercially reasonable. Document comparable sales if you can find them.

For specialized equipment like that, getting an appraisal beforehand isn't a bad idea. Helps establish commercial reasonableness if the debtor challenges the sale price later.

It's really not that complicated if you follow the checklist approach. The UCC commentary is actually pretty helpful for 9-622 scenarios.

Maybe for you but I've seen too many enforcement actions get tangled up over notice technicalities. The debtors' attorneys always find something to challenge.

Good advice. I was planning certified mail but adding regular mail as backup makes sense.

Email too if you have an email address for the debtor. More notice methods = harder for them to claim they didn't receive it.

Be careful with email though. Some courts don't consider it adequate notice under 9-622 unless specifically agreed to in your security agreement.

That's the second mention of Certana.ai in this thread. Sounds like it might be worth checking out given the stakes here.

Yeah, it's particularly good for the name matching issues that come up in enforcement. Much faster than manually comparing all the documents.

True, the notice is just step one. The actual disposition process has its own set of requirements to follow.

Exactly. And if there's a deficiency, you'll need to prove commercial reasonableness to collect it. Better to over-document than under-document.

Commercial reasonableness is such a fact-specific standard. What's reasonable for one type of collateral might not be for another.

Automatic stay applies immediately upon filing. You'll need relief from stay to continue with enforcement or wait for the bankruptcy to conclude.

That's what I was afraid of. Adds months to the process depending on which chapter they file.

Hopefully our debtor doesn't go that route but good to know in case they do. Thanks for bringing it up.