Right to collect on intangibles, chattel paper and instruments and to take control of proceeds
2008, c.S-5.8, s.109
“secured party” includes a receiver.
57(2)If the debtor is in default under a security agreement, the secured party is entitled
(a)
to notify a debtor on an intangible or chattel paper or an obligor on an instrument to make payment to the secured party whether or not the assignor was making collections on the collateral before the notification,
(b)
to apply any money taken as collateral or paid to the secured party under paragraph (
a) to the satisfaction of the obligation secured by the security interest, and
(c)
subject to section 59, to take control of any proceeds to which the secured party is entitled under section 28.
57(3)A secured party who enforces a security interest by giving notice in accordance with paragraph (2)(
a) shall notify the debtor within fifteen days after doing so.
57(4)A secured party may deduct reasonable collection expenses
(a)
from amounts collected from a debtor on an intangible or chattel paper or from an obligor under an instrument, or
(b)
from money held as collateral.
2004, c.35, s.8; 2008, c.S-5.8, s.109