§ 25‑9‑208. Additional duties of secured party having control of collateral.
(a) Applicability ofsection. This section applies to cases in which there is no outstandingsecured obligation and the secured party is not committed to make advances,incur obligations, or otherwise give value.
(b) Duties of securedparty after receiving demand from debtor. Within 10 days after receiving anauthenticated demand by the debtor:
(1) A secured partyhaving control of a deposit account under G.S. 25‑9‑104(a)(2) shallsend to the bank with which the deposit account is maintained an authenticatedstatement that releases the bank from any further obligation to comply withinstructions originated by the secured party;
(2) A secured partyhaving control of a deposit account under G.S. 25‑9‑104(a)(3)shall:
a. Pay the debtor thebalance on deposit in the deposit account; or
b. Transfer the balanceon deposit into a deposit account in the debtor's name;
(3) A secured party,other than a buyer, having control of electronic chattel paper under G.S. 25‑9‑105shall:
a. Communicate theauthoritative copy of the electronic chattel paper to the debtor or itsdesignated custodian;
b. If the debtordesignates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for thesecured party, communicate to the custodian an authenticated record releasingthe designated custodian from any further obligation to comply withinstructions originated by the secured party and instructing the custodian tocomply with instructions originated by the debtor; and
c. Take appropriateaction to enable the debtor or its designated custodian to make copies of orrevisions to the authoritative copy which add or change an identified assigneeof the authoritative copy without the consent of the secured party;
(4) A secured partyhaving control of investment property under G.S. 25‑8‑106(d)(2) orG.S. 25‑9‑106(b) shall send to the securities intermediary orcommodity intermediary with which the security entitlement or commoditycontract is maintained an authenticated record that releases the securitiesintermediary or commodity intermediary from any further obligation to complywith entitlement orders or directions originated by the secured party;
(5) A secured partyhaving control of a letter‑of‑credit right under G.S. 25‑9‑107shall send to each person having an unfulfilled obligation to pay or deliverproceeds of the letter of credit to the secured party an authenticated releasefrom any further obligation to pay or deliver proceeds of the letter of creditto the secured party; and
(6) A secured partyhaving control of an electronic document shall:
a. Give control of theelectronic document to the debtor or its designated custodian;
b. If the debtordesignates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the securedparty, communicate to the custodian an authenticated record releasing thedesignated custodian from any further obligation to comply with instructionsoriginated by the secured party and instructing the custodian to comply withinstructions originated by the debtor; and
c. Take appropriateaction to enable the debtor or its designated custodian to make copies of orrevisions to the authoritative copy which add or change an identified assigneeof the authoritative copy without the consent of the secured party. (2000‑169, s. 1; 2006‑112,s. 47.)
§ 25‑9‑208. Additional duties of secured party having control of collateral.
(a) Applicability ofsection. This section applies to cases in which there is no outstandingsecured obligation and the secured party is not committed to make advances,incur obligations, or otherwise give value.
(b) Duties of securedparty after receiving demand from debtor. Within 10 days after receiving anauthenticated demand by the debtor:
(1) A secured partyhaving control of a deposit account under G.S. 25‑9‑104(a)(2) shallsend to the bank with which the deposit account is maintained an authenticatedstatement that releases the bank from any further obligation to comply withinstructions originated by the secured party;
(2) A secured partyhaving control of a deposit account under G.S. 25‑9‑104(a)(3)shall:
a. Pay the debtor thebalance on deposit in the deposit account; or
b. Transfer the balanceon deposit into a deposit account in the debtor's name;
(3) A secured party,other than a buyer, having control of electronic chattel paper under G.S. 25‑9‑105shall:
a. Communicate theauthoritative copy of the electronic chattel paper to the debtor or itsdesignated custodian;
b. If the debtordesignates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for thesecured party, communicate to the custodian an authenticated record releasingthe designated custodian from any further obligation to comply withinstructions originated by the secured party and instructing the custodian tocomply with instructions originated by the debtor; and
c. Take appropriateaction to enable the debtor or its designated custodian to make copies of orrevisions to the authoritative copy which add or change an identified assigneeof the authoritative copy without the consent of the secured party;
(4) A secured partyhaving control of investment property under G.S. 25‑8‑106(d)(2) orG.S. 25‑9‑106(b) shall send to the securities intermediary orcommodity intermediary with which the security entitlement or commoditycontract is maintained an authenticated record that releases the securitiesintermediary or commodity intermediary from any further obligation to complywith entitlement orders or directions originated by the secured party;
(5) A secured partyhaving control of a letter‑of‑credit right under G.S. 25‑9‑107shall send to each person having an unfulfilled obligation to pay or deliverproceeds of the letter of credit to the secured party an authenticated releasefrom any further obligation to pay or deliver proceeds of the letter of creditto the secured party; and
(6) A secured partyhaving control of an electronic document shall:
a. Give control of theelectronic document to the debtor or its designated custodian;
b. If the debtordesignates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the securedparty, communicate to the custodian an authenticated record releasing thedesignated custodian from any further obligation to comply with instructionsoriginated by the secured party and instructing the custodian to comply withinstructions originated by the debtor; and
c. Take appropriateaction to enable the debtor or its designated custodian to make copies of orrevisions to the authoritative copy which add or change an identified assigneeof the authoritative copy without the consent of the secured party. (2000‑169, s. 1; 2006‑112,s. 47.)
§ 25‑9‑208. Additional duties of secured party having control of collateral.
(a) Applicability ofsection. This section applies to cases in which there is no outstandingsecured obligation and the secured party is not committed to make advances,incur obligations, or otherwise give value.
(b) Duties of securedparty after receiving demand from debtor. Within 10 days after receiving anauthenticated demand by the debtor:
(1) A secured partyhaving control of a deposit account under G.S. 25‑9‑104(a)(2) shallsend to the bank with which the deposit account is maintained an authenticatedstatement that releases the bank from any further obligation to comply withinstructions originated by the secured party;
(2) A secured partyhaving control of a deposit account under G.S. 25‑9‑104(a)(3)shall:
a. Pay the debtor thebalance on deposit in the deposit account; or
b. Transfer the balanceon deposit into a deposit account in the debtor's name;
(3) A secured party,other than a buyer, having control of electronic chattel paper under G.S. 25‑9‑105shall:
a. Communicate theauthoritative copy of the electronic chattel paper to the debtor or itsdesignated custodian;
b. If the debtordesignates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for thesecured party, communicate to the custodian an authenticated record releasingthe designated custodian from any further obligation to comply withinstructions originated by the secured party and instructing the custodian tocomply with instructions originated by the debtor; and
c. Take appropriateaction to enable the debtor or its designated custodian to make copies of orrevisions to the authoritative copy which add or change an identified assigneeof the authoritative copy without the consent of the secured party;
(4) A secured partyhaving control of investment property under G.S. 25‑8‑106(d)(2) orG.S. 25‑9‑106(b) shall send to the securities intermediary orcommodity intermediary with which the security entitlement or commoditycontract is maintained an authenticated record that releases the securitiesintermediary or commodity intermediary from any further obligation to complywith entitlement orders or directions originated by the secured party;
(5) A secured partyhaving control of a letter‑of‑credit right under G.S. 25‑9‑107shall send to each person having an unfulfilled obligation to pay or deliverproceeds of the letter of credit to the secured party an authenticated releasefrom any further obligation to pay or deliver proceeds of the letter of creditto the secured party; and
(6) A secured partyhaving control of an electronic document shall:
a. Give control of theelectronic document to the debtor or its designated custodian;
b. If the debtordesignates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the securedparty, communicate to the custodian an authenticated record releasing thedesignated custodian from any further obligation to comply with instructionsoriginated by the secured party and instructing the custodian to comply withinstructions originated by the debtor; and
c. Take appropriateaction to enable the debtor or its designated custodian to make copies of orrevisions to the authoritative copy which add or change an identified assigneeof the authoritative copy without the consent of the secured party. (2000‑169, s. 1; 2006‑112,s. 47.)
