Commonwealth Consolidated Acts Commonwealth Consolidated ActsNotice to higher priority parties
(1) Unless section 144 applies, a secured party (the enforcing party ) who proposes to take action under subsection 120(2) in relation to a security interest in collateral must give a written notice to any other secured party (a higher priority party ) with a security interest in the collateral that has a higher priority.
(2) The notice must:
(a) contain the name of the secured party giving the notice; and
(b) contain a description of the collateral; and
(c) state that the enforcing party proposes to take action under paragraph 120(2)(a) or (b), as the case requires; and
(d) state the address to which a notice may be given under subsection (3); and
(e) be given to each higher priority party:
(i) at least 10 business days before the day the action is to be taken; or
(ii) if a higher priority party has given a written notice to the enforcing party specifying a shorter period to apply for the purposes of this subsection--before the end of that period.
Note: The period mentioned in paragraph (e) may be extended by a court under section 293.
(3) A higher priority party who is given a notice under subsection (1) may, before any action is taken under subsection 120(2), give a written notice to the enforcing party informing the enforcing party of the higher priority party's proposal to take action under that subsection. If the higher priority party gives such a notice, the enforcing party is not entitled to take action under that subsection.
Notice to grantor
(4) A secured party must give a written notice to the grantor of any action the secured party takes in accordance with subsection 120(2).
(5) The notice under subsection (4) must be given:
(a) before the end of 5 business days after the day the action is taken; or
(b) if the grantor has given a written notice to the secured party specifying a shorter period to apply for the purposes of this subsection--before the end of that period.
Note: The period mentioned in paragraph (a) may be extended by a court under section 293.