Payment requirements after a UCC 9-406 notice

Scope of this page

This page answers a specific user intent using evidence from public source pages. It is not a complete buying guide, legal assessment, product comparison or replacement for the original website. Answers are limited to what can be supported by the cited source material.

Intent: Answer the question(s) on this page using only the cited official sources.

Topic: Ucc 406 Notice Payment Guidance

Last updated:

Primary source: https://secondwindconsultants.com/resource/who-should-you-pay-after-receiving-a-ucc-9-406-notice

Quick Info

Prerequisite: adequate proof of assignment and priority must be provided.

Purpose and usage

This page provides short, extractable answers for the topic above.

Key points

  • What should happen if adequate proof of assignment and priority is not provided?: Continue paying the vendor in the ordinary course of business.
  • Which items must be proven before payment is redirected?: Assignment and priority.

Terms and entities

Canonical definitions live on the Facts pages. This page only references them.

Prerequisite for paying the third party: What must be present?

Prerequisite: adequate proof of assignment and priority must be provided.

What should happen if adequate proof of assignment and priority is not provided?

Continue paying the vendor in the ordinary course of business.

Which items must be proven before payment is redirected?

Assignment and priority.

Sources

  1. https://secondwindconsultants.com/resource/do-you-have-to-comply-with-a-ucc-9-406-notice
  2. https://secondwindconsultants.com/resource/who-should-you-pay-after-receiving-a-ucc-9-406-notice

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