reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter V - Filing (§§ 2321 — 2346) › § 2338 - Claim concerning inaccurate or wrongfully filed record

(a) Statement with respect to record indexed under person's name.— A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed.
(b) Contents of statement under subsection (a) of this section.— An information statement under subsection (a) of this section must:
(1) Identify the record to which it relates by:
(A) The file number assigned to the initial financing statement to which the record relates, and
(B) if the correction statement relates to a record filed or recorded in a filing office described in § 2321(a)(1) of this title, the date that the initial financing statement was filed or recorded and the information specified in § 2321(b) of this title;
(2) indicate that it is an information statement, and
(3) provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.
(c) Statement by secured party of record.— A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under § 2329(d) of this title
(d) Contents of statement under subsection (c) of this section.— An information statement under subsection (c) of this section must:
(1) Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
(2) indicate that it is an information statement, and
(3) provide the basis for the person's belief that the person that filed the record was not entitled to do so under § 2329(d) of this title.
(e) Record not affected by information statement.— The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record.
History —Sept. 19, 1996, No. 241, added as § 9-518 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter V - Filing (§§ 2321 — 2346) › § 2340 - Acceptance and refusal to accept record

(a) Mandatory refusal to accept record.— A filing office shall refuse to accept a record for filing for a reason set forth in § 2336(b) of this title and may refuse to accept a record for filing only for a reason set forth in § 2336(b) of this title.
(b) Communication concerning refusal.— If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing-office rule but in no event more than two (2) business days after the filing office receives the record.
(c) When filed financing statement effective.— A filed financing statement satisfying subsections (a) and (b) of § 2322 of this title and subsection (b) is effective, even if the filing office is required to refuse to accept it for filing under subsection (a). However, § 2288 of this title applies to a filed financing statement providing information described in § 2336(b)(5) of this title which is incorrect at the time the financing statement is filed.
(d) Separate application to multiple debtors.— If a record communicated to a filing office provides information that relates to more than one (1) debtor, this part applies as to each debtor separately.
History —Sept. 19, 1996, No. 241, added as § 9-520 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter V - Filing (§§ 2321 — 2346) › § 2341 - Uniform form of written financing statement and amendment

(a) Initial financing statement form.— A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in § 2336(b) of this title:
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(b) Amendment form.— A filing office that accepts written records may not refuse to accept a written record in the following form and format, except for a reason set forth in § 2336(b) of this title:
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History —Sept. 19, 1996, No. 241, added as § 9-521 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter V - Filing (§§ 2321 — 2346) › § 2342 - Maintenance and destruction of records

(a) Post-lapse maintenance and retrieval of information.— The filing office shall maintain a record of the information provided in a filed financing statement for at least one (1) year after the effectiveness of the financing statement has lapsed under § 2335 of this title with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and:
(1) If the record was filed or recorded in the filing office described in § 2321(a)(1) of this title, by using the file number assigned to the initial financing statement to which the record relates and the date that the record was filed or recorded; or
(2) if the record was filed in the filing office described in § 2321(a)(2) of this title, by using the file number assigned to the initial financing statement to which the record relates.
(b) Destruction of written records.— Except to the extent that a statute governing disposition of public records provides otherwise, the filing office immediately may destroy any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement which complies with subsection (a) of this section.
History —Sept. 19, 1996, No. 241, added as § 9–522 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter V - Filing (§§ 2321 — 2346) › § 2344 - Delay by filing office

Delay by the filing office beyond a time limit prescribed by this subchapter is excused if:
(1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office, and
(2) the filing office exercises reasonable diligence under the circumstances.
History —Sept. 19, 1996, No. 241, added as § 9–524 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter V - Filing (§§ 2321 — 2346) › § 2346 - Filing-office rules

(a) Adoption of filing-office rules.— The Department of State shall adopt and publish rules to implement this chapter. The filing-office rules must be:
(1) Consistent with this chapter, and
(2) adopted and published in accordance with the Uniform Administrative Procedures Act.
(b) Harmonization of rules.— To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially this subchapter, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions that enact substantially this part, the Department of State, so far as is consistent with the purposes, policies, and provisions of this chapter, in adopting, amending, and repealing filing-office rules, shall:
(1) Consult with filing offices in other jurisdictions that enact substantially this subchapter; and
(2) consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization, and
(3) take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this subchapter.
(c) Adoption of filing-office rules for the Registry of the Property.— The Department of Justice shall adopt and publish rules to implement the filings of financing statements when the collateral is fixtures, as extracted collateral or timber to be cut as permitted by this chapter.
History —Sept. 19, 1996, No. 241, added as § 9–526 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2361 - Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes

(a) Rights of secured party after default.— After default, a secured party has the rights provided in this subchapter and, except as otherwise provided in § 2362 of this title, those provided by agreement of the parties. A secured party:
(1) May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure, and
(2) if the collateral is documents, may proceed either as to the documents or as to the goods they cover.
(b) Rights and duties of secured party in possession or control.— A secured party in possession of collateral or control of collateral under § 2214, 2215, 2216, 2217 or 2217a of this title has the rights and duties provided in § 2237 of this title.
(c) Rights cumulative; simultaneous exercise.— The rights under subsections (a) and (b) of this section are cumulative and may be exercised simultaneously.
(d) Rights of debtor and obligor.— Except as otherwise provided in subsection (g) and § 2365 of this title after default, a debtor and an obligor have the rights provided in this subchapter and by agreement of the parties.
(e) Continuation of security interest after judgment.— The security interest shall continue when the secured party has reduced its claim to judgment, and shall secure the judgment without interruption whether or not the security interest is expressly recognized in the judgment, except to the extent the judgment expressly provides to the contrary.
(f) Judicial sale.— A judicial sale pursuant to a judgment is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this chapter.
(g) Consignor or buyer of certain rights to payment.— Except as otherwise provided in § 2367(c) of this title, this subchapter imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
History —Sept. 19, 1996, No. 241, added as § 9-601 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2362 - Waiver and variance of rights and duties

Except as otherwise provided in § 2384 of this title, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed :
(1) Section 2337(b)(4)(C) of this title, which deals with use and operation of the collateral by the secured party.
(2) Section 2340 of this title, which deals with requests for an accounting and requests concerning a list of collateral and statement of account.
(3) Section 2367(c) of this title, which deals with collection and enforcement of collateral.
(4) Sections 2368(a) and 2375(c) of this title to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition.
(5) Sections 2368(a) and 2375(d) of this title to the extent that they require accounting for or payment of surplus proceeds of collateral.
(6) Section § 2369 of this title to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace.
(7) Sections 2370(b), 2371, 2373 and 2374 of this title, which deal with disposition of collateral.
(8) Section 2375(f) of this title, which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor.
(9) Section 2376 of this title, which deals with explanation of the calculation of a surplus or deficiency.
(10) Sections 2380, 2381, and 2382 of this title, which deal with acceptance of collateral in satisfaction of obligation.
(11) Section 2383 of this title, which deals with redemption of collateral.
(12) Section 2384 of this title, which deals with permissible waivers.
(13) Sections 2385 and 2386 of this title, which deal with the secured party's liability for failure to comply with this chapter.
History —Sept. 19, 1996, No. 241, added as § 9-602 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2363 - Agreement on standards concerning rights and duties

(a) Agreed standards.— The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in § 2362 of this title if the standards are not manifestly unreasonable.
(b) Agreed standards inapplicable to breach of peace.— Subsection (a) of this section does not apply to the duty under § 2369 of this title to refrain from breaching the peace.
History —Sept. 19, 1996, No. 241, added as § 9-603 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2364 - Procedure if security agreement covers real property or fixtures

(a) Enforcement: personal and real property.— If a security agreement covers both personal and real property, a secured party may proceed:
(1) Under this subchapter as to the personal property without prejudicing any rights with respect to the real property, or
(2) as to both the personal property and the real property in accordance with the rights with respect to the real property, in which case the other provisions of this part do not apply.
(b) Enforcement: fixtures.— Subject to subsection (c) of this section, if a security agreement covers goods that are or become fixtures, a secured party may proceed:
(1) Under this subchapter, or
(2) in accordance with the rights with respect to real property, in which case the other provisions of this subchapter do not apply.
(c) Removal of fixtures.— Subject to the other provisions of this subchapter, if a secured party holding a security interest in fixtures has priority over all owners and encumbrancers of the real property, the secured party, after default, may remove the collateral from the real property.
(d) Injury caused by removal.— A secured party that removes collateral shall promptly reimburse any encumbrancer or owner of the real property, other than the debtor, for the cost of repair of any physical injury caused by the removal. The secured party need not reimburse the encumbrancer or owner for any diminution in value of the real property caused by the absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
History —Sept. 19, 1996, No. 241, added as § 9-604 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2365 - Unkown debtor or secondary obligor

A secured party does not owe a duty based on its status as secured party:
(1) To a person that is a debtor or obligor, unless the secured party knows:
(A) That the person is a debtor or obligor;
(B) the identity of the person, and
(C) how to communicate with the person; or
(2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(A) That the person is a debtor, and
(B) the identity of the person.
History —Sept. 19, 1996, No. 241, added as § 9-605 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2366 - Time of default for agricultural lien

For purposes of this subchapter, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created.
History —Sept. 19, 1996, No. 241, added as § 9-606 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2367 - Collection and enforcement by secured party

(a) Collection and enforcement generally.— If so agreed, and in any event after default, a secured party:
(1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
(2) may take any proceeds to which the secured party is entitled under § 2265 of this title;
(3) may enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;
(4) if it holds a security interest in a deposit account perfected by control under § 2265(a)(1) of this title, may apply the balance of the deposit account to the obligation secured by the deposit account, and
(5) if it holds a security interest in a deposit account perfected by control under clauses (2) or (3) of subsection (a) of § 2214 of this title, may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.
(b) [Reserved.]
(c) Commercially reasonable collection and enforcement.— A secured party shall proceed in a commercially reasonable manner if the secured party:
(1) Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral, and
(2) is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.
(d) Expenses of collection and enforcement.— A secured party may deduct from the collections made pursuant to subsection (c) of this section reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.
(e) Duties to secured party not affected.— This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party.
—Sept. 19, 1996, No. 241, added as § 9-607 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
History
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2368 - Application of proceeds of collection or enforcement; liability for deficiency and right to surplus

(a) Application of proceeds, surplus, and deficiency if obligation secured.— If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:
(1) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under § 2367 of this title in the following order to:
(A) The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(B) the satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made, and
(C) the satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed.
(2) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder's demand under clause (1)(C).
(3) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under § 2367 of this title unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.
(4) A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.
(b) No surplus or deficiency in sales of certain rights to payment.— If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.
History —Sept. 19, 1996, No. 241, added as § 9-608 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2369 - Secured party's right to take possession after default

(a) Possession; rendering equipment unusable; disposition on debtor's premises.— After default, a secured party:
(1) May take possession of the collateral, provided, however, that in a consumer-goods transaction prior to the taking of possession the secured party shall be required to give the debtor at least five (5) days written notice, to the last known address of debtor, of the intent to take possession of the collateral, and
(2) without removal, may render equipment unusable and dispose of collateral on a debtor's premises under § 2370 of this title.
(b) Judicial and nonjudicial process.— A secured party may proceed under subsection (a) of this section:
(1) pursuant to judicial process, or
(2) without judicial process, if it proceeds without breach of the peace.
(c) Assembly of collateral.— If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
(d) Consumer-goods transaction.— In a consumer-goods transaction the security agreement shall bear the following notice in the space immediately preceding the signature of the debtor: NOTICE TO DEBTOR. YOU ARE HEREBY NOTIFIED THAT THE SECURED PARTY MAY AFTER AN EVENT OF DEFAULT TAKE POSSESSION OF THE COLLATERAL WITHOUT JUDICIAL PROCESS.
History —Sept. 19, 1996, No. 241, added as § 9-609 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2370 - Disposition of collateral after default

(a) Disposition after default.— After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
(b) Commercially reasonable disposition.— Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one (1) or more contracts, as a unit or in parcels, and at any time and place and on any terms.
(c) Purchase by secured party.— A secured party may purchase collateral:
(1) At a public disposition, or
(2) at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
(d) Warranties on disposition.— A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
(e) Disclaimer of warranties.— A secured party may disclaim or modify warranties under subsection (d) of this section:
(1) In a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition, or
(2) by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(f) Record sufficient to disclaim warranties.— A record is sufficient to disclaim warranties under subsection (e) if this section if it indicates “There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition” or uses words of similar import.
History —Sept. 19, 1996, No. 241, added as § 9-610 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2371 - Notification before disposition of collateral

(a) Notification date.— In this section, “notification date” means the earlier of the date on which:
(1) A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition, or
(2) the debtor and any secondary obligor waive the right to notification.
(b) Notification of disposition required.— Except as otherwise provided in subsection (d) of this section, a secured party that disposes of collateral under § 2370 of this title shall send to the persons specified in subsection (c) of this section a reasonable authenticated notification of disposition.
(c) Persons to be notified.— To comply with subsection (b) of this section, the secured party shall send an authenticated notification of disposition to:
(1) The debtor;
(2) any secondary obligor, and
(3) if the collateral is other than consumer goods:
(A) Any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(B) any other secured party or lienholder that, ten (10) days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(i) Identified the collateral;
(ii) was indexed under the debtor's name as of that date, and
(iii) was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and
(C) any other secured party that, ten (10) days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in § 2261(a) of this title.
(d) Subsection (b) of this section inapplicable: perishable collateral; recognized market.— Subsection (b) of this section does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.
(e) Compliance with subsection (c)(3)(B) of this section.— A secured party complies with the requirement for notification prescribed by subsection (c)(3)(B) of this section if:
(1) Not later than twenty (20) days or earlier than thirty (30) days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection (c)(3)(B) of this section, and
(2) before the notification date, the secured party:
(A) Did not receive a response to the request for information, or
(B) received a response to the request for information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.
History —Sept. 19, 1996, No. 241, added as § 9-611 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2372 - Timeliness of notification before disposition of collateral

(a) Reasonable time is question of fact.— Except as otherwise provided in subsection (b) of this section, whether a notification is sent within a reasonable time is a question of fact.
(b) Ten (10)-day period sufficient in non-consumer transaction.— In a transaction other than a consumer transaction, a notification of disposition sent after default and ten (10) days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition.
History —Sept. 19, 1996, No. 241, added as § 9-612 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2373 - Contents and form of notification before disposition of collateral—General

Except in a consumer-goods transaction, the following rules apply:
(1) The contents of a notification of disposition are sufficient if the notification:
(A) Describes the debtor and the secured party;
(B) describes the collateral that is the subject of the intended disposition;
(C) states the method of intended disposition;
(D) states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting, and
(E) 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 subsection (1) of this section, are nevertheless sufficient is a question of fact.
(3) The contents of a notification providing substantially the information specified in subsection (1) of this section, are sufficient, even if the notification includes:
(A) Information not specified by that subsection, or
(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 § 2374(3) of this title, when completed, 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]]
Name of Debtor(s): [Include only if debtor(s) are not an addressee]]
[For a public disposition:]
We will sell [or lease or license, as applicable ] the [describe collateral]] [to the highest qualified bidder] in public as follows:
Day and Date: ___________
Time: ___________
Place: ___________
[For a private disposition:]
We will sell [or lease or license, as applicable] the [describe collateral]] privately sometime after [day and date]].
You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $]. You may request an accounting by calling us at [telephone number]]
[End of Form]
History —Sept. 19, 1996, No. 241, added as § 9-613 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2377 - Rights of transferee of collateral

(a) Effects of disposition.— A secured party's disposition of collateral after default:
(1) Transfers to a transferee for value all of the debtor's rights in the collateral;
(2) discharges the security interest under which the disposition is made, and
(3) discharges any subordinate security interest or other subordinate lien.
(b) Rights of good-faith transferee.— A transferee that acts in good faith takes free of the rights and interests described in subsection (a) of this section, even if the secured party fails to comply with this chapter or the requirements of any judicial proceeding.
(c) Rights of other transferee.— If a transferee does not take free of the rights and interests described in subsection (a) of this section, the transferee takes the collateral subject to:
(1) The debtor's rights in the collateral;
(2) the security interest or agricultural lien under which the disposition is made, and
(3) any other security interest or other lien.
History —Sept. 19, 1996, No. 241, added as § 9-617 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2378 - Rights and duties of certain secondary obligors

(a) Rights and duties of secondary obligor.— A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
(1) Receives an assignment of a secured obligation from the secured party;
(2) receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party, or
(3) is subrogated to the rights of a secured party with respect to collateral.
(b) Effect of assignment, transfer, or subrogation.— An assignment, transfer, or subrogation described in subsection (a) of this section:
(1) Is not a disposition of collateral under § 2370 of this title; and
(2) relieves the secured party of further duties under this chapter.
History —Sept. 19, 1996, No. 241, added as § 9-618 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2379 - Transfer of record or legal title

(a) Transfer statement.— In this section, “transfer statement” means a record authenticated by a secured party stating:
(1) That the debtor has defaulted in connection with an obligation secured by specified collateral;
(2) that the secured party has exercised its post-default remedies with respect to the collateral;
(3) that, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral, and
(4) the name and mailing address of the secured party, debtor, and transferee.
(b) Effect of transfer statement.— A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the statement in any official filing, recording, registration, or certificate-of-title system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official or office responsible for maintaining the system, the official or office shall:
(1) Accept the transfer statement;
(2) promptly amend its records to reflect the transfer; and
(3) if applicable, issue a new appropriate certificate of title in the name of the transferee.
(c) Transfer not a disposition; no relief of secured party's duties.— A transfer of the record or legal title to collateral to a secured party under subsection (b) of this section or otherwise is not of itself a disposition of collateral under this chapter and does not of itself relieve the secured party of its duties under this chapter.
History —Sept. 19, 1996, No. 241, added as § 9-619 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2381 - Notification of proposal to accept collateral

(a) Persons to which proposal to be sent.— A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
(1) Any person from which the secured party has received, before the debtor consented to the acceptance, an authenticated notification of a claim of an interest in the collateral;
(2) any other secured party or lienholder that, ten (10) days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(A) Identified the collateral;
(B) was indexed under the debtor's name as of that date, and
(C) was filed in the office or offices in which to file a financing statement against the debtor covering the collateral as of that date, and
(3) any other secured party that, ten (10) days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in § 2361(a) of this title.
(b) Proposal to be sent to secondary obligor in partial satisfaction.— A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a) of this section.
History —Sept. 19, 1996, No. 241, added as § 9-621 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2382 - Effect of acceptance of collateral

(a) Effect of acceptance.— A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1) Discharges the obligation to the extent consented to by the debtor;
(2) transfers to the secured party all of a debtor's rights in the collateral;
(3) discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien, and
(4) terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstanding noncompliance.— A subordinate interest is discharged or terminated under subsection (a) of this section, even if the secured party fails to comply with this chapter.
History —Sept. 19, 1996, No. 241, added as § 9-622 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2383 - Right to redeem collateral

(a) Persons that may redeem.— A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.
(b) Requirements for redemption.— To redeem collateral, a person shall tender:
(1) Fulfillment of all obligations secured by the collateral, and
(2) the reasonable expenses and attorney's fees described in § 2375(a)(1) of this title.
(c) When redemption may occur.— A redemption may occur at any time before a secured party:
(1) Has collected collateral under § 2367 of this title;
(2) has disposed of collateral or entered into a contract for its disposition under § 2370 of this title, or
(3) has accepted collateral in full or partial satisfaction of the obligation it secures under § 2382 of this title.
History —Sept. 19, 1996, No. 241, added as § 9-623 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2384 - Waiver

(a) Waiver of disposition notification.— A debtor or secondary obligor may waive the right to notification of disposition of collateral under § 2371 of this title only by an agreement to that effect entered into and authenticated after default.
(b) Waiver of mandatory disposition.— A debtor may waive the right to require disposition of collateral under § 2380(e) of this title only by an agreement to that effect entered into and authenticated after default.
(c) Waiver of redemption right.— Except in a consumer-goods transaction, a debtor or secondary obligor may waive the right to redeem collateral under § 2383 of this title only by an agreement to that effect entered into and authenticated after default.
History —Sept. 19, 1996, No. 241, added as § 9-624 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2386 - Action in which deficiency or surplus is in issue

(a) Applicable rules if amount of deficiency or surplus in issue.— In an action arising from a transaction, including a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply:
(1) A secured party need not prove compliance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party's compliance in its petition, answer, or in connection with a motion for summary judgment.
(2) If the secured party's noncompliance is pleaded, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this subchapter.
(3) Except as otherwise provided in § 2388 of this title, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney's fees exceeds the greater of:
(A) The proceeds of the collection, enforcement, disposition, or acceptance, or
(B) the amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance.
(4) For purposes of clause (3)(B) of this subsection, in a consumer transaction the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney's fees unless the secured party proves that the amount is less than that sum.
(5) If a deficiency or surplus is calculated under § 2375(f) of this title, the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
History —Sept. 19, 1996, No. 241, added as § 9-626 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter VI - Default (§§ 2361 — 2388) › § 2387 - Determination of whether conduct was commercially reasonable

(a) Greater amount obtainable under other circumstances; no preclusion of commercial reasonableness.— The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a commercially reasonable manner.
(b) Dispositions that are commercially reasonable.— A disposition of collateral is made in a commercially reasonable manner if the disposition is made:
(1) In the usual manner on any recognized market;
(2) at the price current in any recognized market at the time of the disposition, or
(3) otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.
(c) Approval by court or on behalf of creditors.— A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved:
(1) In a judicial proceeding;
(2) by a bona fide creditors' committee;
(3) by a representative of creditors, or
(4) by an assignee for the benefit of creditors.
(d) Approval under subsection (c) of this section not necessary; absence of approval has no effect.— Approval under subsection (c) of this section need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.
History —Sept. 19, 1996, No. 241, added as § 9-627 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.