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Can you summarize MNST 336.9-208?
UNIFORM COMMERCIAL CODE > ADDITIONAL DUTIES OF SECURED PARTY HAVING CONTROL OF COLLATERAL.
Short Summary
This section of the Minnesota Statutes, under the Uniform Commercial Code, outlines the additional duties of a secured party who has control of collateral. It applies to cases where there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value. The section specifies the duties of the secured party after receiving a demand from the debtor. These duties include releasing the bank from further obligations regarding a deposit account, paying the debtor the balance on deposit or transferring it to a deposit account in the debtor’s name, communicating the authoritative copy of electronic chattel paper to the debtor or its designated custodian, releasing the designated custodian from further obligations, sending an authenticated record to release the securities intermediary or commodity intermediary from complying with entitlement orders or directions, sending an authenticated release to persons with unfulfilled obligations regarding a letter of credit right, and giving control of an electronic document to the debtor or its designated custodian. No specific penalties are mentioned in this section.
Whom does it apply to?
Secured parties who have control of collateral
What does it govern?
Additional duties of a secured party having control of collateral
What are exemptions?
This section applies only in cases where there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota