Amended by Stats. 2023, Ch. 210, Sec. 34. (SB 95) Effective January 1, 2024.
(a)Except as otherwise provided in subdivision (c), this section applies if both of the following conditions are satisfied:
(1)There is no outstanding secured obligation.
(2)The secured party is not committed to make advances, incur obligations, or otherwise give value.
(b)Within 10 days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under subdivision (a) of Section 9406 or subdivision (b) of Section 12106 of an assignment to the secured party as
assignee a signed record that releases the account debtor from any further obligation to the secured party.
(c)This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.
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