Document ID: chunk:federal_register_of_legislation:C2024C00719:section:121
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 121
Character Range: 219316–221551

121  Enforcement of security interests in liquid assets—notice to higher priority parties and grantor

Notice 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.

Part 4.3—Seizure and disposal or retention of collateral

Division 1—Introduction